Bitcoin (BTC) and altcoins have been experiencing a sharp downward trend over the past few weeks. While the market is facing a major decline, the on-chain analytics platform Santiment has noted that some cryptocurrencies have reached historical buying zones.
According to Santiment, many major cryptocurrencies fell to historical buying zones according to the 30-day MVRV metric during the recent market downturn.
Santiment also added that the first signs of a recovery rally are beginning to appear in many cryptocurrencies, which could signal a potential short-term uptrend.
Santiment noted that, according to its 30-day MVRV metric, five major assets simultaneously reached negative MVRV values. According to Santiment’s assessment, all of these assets fell into what it defines as a fair buying zone.
- Bitcoin (BTC) -10% (Fair Buying Zone)
- Cardano (ADA) is approximately -18% (Strong Buying Zone)
- Ethereum (ETH) -12% (Fair Buying Zone)
- Chainlink (LINK) -9% (Fair Buying Zone)
- XRP -8% (Fair Buying Zone)
“These negative MVRV ratios mean that almost all retail buyers of crypto assets are currently at a loss over the past month.”
Santiment noted that the chart it added shows that most of these assets have already begun to recover after entering the negative MVRV zone, illustrating a pattern that has recurred across multiple market cycles. However, it cautioned against overestimating this signal, warning that “no indicator guarantees instant gains.”
*This is not investment advice.
