Time To Buy The Dip? These Are The Large-Cap Crypto Assets To Watch
After a turbulent week for the crypto market, the drop in prices has left an opportunity for investors to enter new or double down on their various positions. Fortunately, the blockchain intelligence firm Santiment has identified some of the large-cap cryptocurrencies to consider.
These Cryptocurrencies Are In The Opportunity Zone: Santiment
Santiment revealed via a post on the X platform has provided an interesting outlook on the crypto market, stating that some digital assets are showing buy the dip opportunities. This is based on their Market Value to Realized Value (MVRV) ratios, which measure the average profit/loss of all coins in circulation according to the current price.
An MVRV ratio value greater than 1 indicates that the investors of a coin are holding a net amount of profits at the time. On the other hand, when the value of the metric is less than 1, it means that most investors of the particular crypto are carrying losses. Meanwhile, an MVRV ratio of 1 means that the unrealized profit on a blockchain is equal to the unrealized profit.
Typically, corrections are believed to be more likely when profits are high, as investors are more inclined to sell as their gains grow. On the flip side, crypto holders are likely to refrain from dumping assets when they are in the red, leading to the formation of price bottoms. This forms the rationale behind Santiments Opportunity and Danger Zone investment analysis.
In its recent post on X, Santiment mentioned that all notable large-cap crypto assets (except Toncoin) are in the buying opportunity in the short term. As shown in the chart below, the 30-day Market Value to Realized Value ratio of these assets is deep in the negative, implying there is less risk attached to investing in them at the moment.
According to Santiments data, Dogecoin (DOGE) with an MVRV ratio of 19.7% has the best buy the dip potential. It is followed by Uniswaps governance token UNI, with a Market Value to Realized Value ratio of 16.3%. To round up the top three is Litecoin (LTC), which bears an MVRV ratio of 15%.
Bitcoin, the largest cryptocurrency by market cap, is amongst the mentioned assets within the opportunity zone. Having undergone a steep correction in the past week, the MVRV indicator is signaling that the premier cryptocurrency might have bottomed out and could be preparing for a move to the upside.
Crypto Market On A Downturn
The crypto market suffered a massive decline over the past week, with the total market capitalization falling by nearly 8%. This market downturn seems even deeper on bigger timeframes. For instance, in the last 30 days, the digital market has shed more than 21.5% of its value.
Read more: https://www.newsbtc.com/news/time-to-buy-the-dip-these-are-the-large-cap-crypto-assets-to-watch/
Text source: NewsBTC
