Chainlink, Cardano and Ethereum Could Be Undervalued Amid Crypto Market Woes, According to One On-Chain Metric: Santiment
Amid ongoing crypto market uncertainty, one on-chain metric indicates Chainlink (LINK), Cardano (ADA) and Ethereum (ETH) could all be significantly undervalued.
The digital asset analytics firm Santiment says all three assets are flashing negative percentages for their 30-day Market Value to Realized Value (MVRV) ratios.
The MVRV is the ratio of a crypto asset’s market capitalization relative to its realized capitalization, or the value of all the coins at the price they were bought.
When the MVRV value drops below zero, it indicates that the asset is oversold, as traders who bought it at a certain time frame are witnessing losses.
Explains Santiment,
“The lower a coin’s 30-day MVRV is, the less risk there is in opening or adding on to your position.
A coin having a negative percentage means average traders you’re competing with are down money, and there is an opportunity to enter while profits are below the normal “zero-sum game” level. The more negative, the more safe it is for you to buy.
A coin having a positive percentage means average traders you’re competing with are up money, and there is increased risk to enter while profits are above the normal “zero-sum game” level. The more positive, the more dangerous it is for you to buy.”
Chainlink’s 30-day MVRV percentage is -9.5%, Cardano’s is -7.9% and Ethereum’s is -7.6%.
XRP is also flashing an “undervalued” ratio at -5.7%, while Bitcoin (BTC) clocks in at “mildly undervalued,” with a score of -3.7%, according to the analytics firm.
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The post Chainlink, Cardano and Ethereum Could Be Undervalued Amid Crypto Market Woes, According to One On-Chain Metric: Santiment appeared first on The Daily Hodl.
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