Santiment Signals Short-Term Bullishness for Ethereum and Dogecoin Amid Market Correction

• On-chain data shows that seven altcoins, including Dogecoin (DOGE), Uniswap (UNI), and Litecoin (LTC), have seen their MVRV metric drop into negative territory, suggesting these coins are currently oversold and undervalued.
• Bitcoin’s MVRV ratio has turned negative for the first time since March 2023, currently around -9.65%.

While the broader cryptocurrency market has come under intense selling pressure recently, on-chain data for some of the altcoins has been flashing a buy signal. Santiment, a prominent crypto analytics firm, has recently updated the list of large-cap altcoins that could probably see short-term rallies following the recent market correction.

The platform highlights the popular MVRV metric (market-value-to-realized-value) which has dropped into the negative territory for seven such altcoins. Whenever the MVRV metric drops under zero, it indicates that the coin is currently oversold and undervalued. “The lower a coin’s 30-day MVRV is, the less risk there is in opening or adding on to your position for a shorter-term time frame,” noted Santiment.

Dogecoin offers the Best Risk-Reward

As per the Santiment data, the world’s largest memecoin Dogecoin (DOGE) has an MVRV value of -19.7% and offers the best risk-reward among large-cap altcoins. The recent DOGE price drop last week under 10 cents has already led to strong liquidations, per the CNF update.

Following it is the decentralized exchange Uniswap’s native token UNI with an MVRV of -16.3%, and the peer-to-peer payments network Litecoin (LTC) has an MVRV of -15%.

The top smart contract platform, Ethereum (ETH), ranks fourth with an MVRV score of -13.2%. The decentralized oracle network, Chainlink (LINK), follows in fifth place with an MVRV value of -11.1%, while XRP holds the sixth position with a score of -10.1%. In seventh place, Ethereum rival Cardano (ADA) has an MVRV value of -9.9%. Besides, market analysts have also suggested three more altcoins for a rally ahead, as reported by Crypto News Flash.

Bitcoin MVRV Ratio Drops Nearly 10%

The MVRV score of Bitcoin has also turned negative and is currently flashing somewhere around -9.65%. this is the first time since March 2023 that the MVRV score for Bitcoin has turned negative, reported On-chain College.

The analyst further added that bulls are closely monitoring the market-value-to-realized-value, hoping that it will regain above its one-year moving average to begin the uptrend. Historically, a sustained period of staying under zero MVRV hints at a prolonged bull, but this doesn’t seem to be the case for Bitcoin as of now.

Currently, the market is in a phase of weakness, presenting either a fantastic buying opportunity or a precursor to further price drops, noted the analyst. The direction depends on the analysis of other market metrics. There is a possibility of consolidation or a quick rebound, but a prolonged year-long downtrend or the start of a bear market seems unlikely at this point.

The broader cryptocurrency market came under strong selling pressure with the Bitcoin price tanking to $54,500 earlier today. However, Bitcoin has bounced back from the intraday lows and is currently trading 0.32% up at $57,879 with a market cap of $1.141 trillion.

The recent pressure on Bitcoin price has been due to the continuous selling by the German government as well as the recent BTC transfers by Mt. Gox to creditors, reported CNF.