Santiment: MVRV indicator shows that some mainstream tokens have entered the undervalued zone

LINK2,73%
ADA4,34%
ETH2,65%
XRP3,02%

ChainCatcher Message: The crypto market analysis firm Santiment posted on social media that if a cryptocurrency’s MVRV indicator is negative, most retail traders holding that token are at a loss. This presents a buying opportunity because the profit is below the normal “zero-sum game” level. The more negative the return, the lower the current risk for investors to buy.

The current MVRV indicators for mainstream tokens are: ChainLink -9.5%, Cardano -7.9%, Ethereum -7.6%, XRP -5.7%, Bitcoin -3.7%, all in the undervalued zone. Note: MVRV stands for Market Value to Realized Value Ratio. It is usually translated as “Market Cap / Realized Cap Ratio” in Chinese. This indicator typically reflects whether the average investor holding this coin is making a profit or a loss, and whether the overall market valuation is overvalued or undervalued.

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