- Santiment points out massive buying opportunities currently present in the markets for MANA, SAND, REN, and CHZ.
- The MVRV of the altcoins, as well as that of BTC, are at levels similar to historical bounce points.
The cryptocurrency market capitalization dropped during the week following a plunge that started over the weekend. However, this drop has pushed several altcoins into price regions where they present massive buying opportunities for investors.
According to data pointed out by Santiment, altcoins in this category include Decentraland (MANA), the Sandbox (SAND), Ren (REN), and Chiliz (CHZ). These tokens are all at historical pain points where bounces occur, per their MVRV data.
The MVRV (market-value-to-realized-value) measures the ratio of an asset’s market cap versus its realized capitalization and is used to detect overbought or oversold conditions. Per Santiment’s data, the MVRV of MANA, SAND, REN, and CHZ are 1.12, 1.21, 1.05, and 1.22 respectively. This puts the tokens in the opportunity zone and bodes well for investors.
📉 #Crypto market caps have flushed downward over the weekend and into Monday. #Bitcoin & #Ethereum are holding up somewhat, but #altcoins have been hit particularly hard. Our model, though, indicates, that several projects are now at historical pain points where bounces occur. pic.twitter.com/oPZnSFdFkH
— Santiment (@santimentfeed) December 19, 2022
At press time, MANA was trading at around $0.30, down 2.39 percent in the last 24 hours. The price marks a 55.7 percent plunge so far in Q4 of 2022 for the native token of the Decentraland metaverse ecosystem.
SAND recorded a similar price plunge in Q4 as well. The native token of the metaverse gaming platform is down 47.5 percent so far in the quarter. The token is at $0.44, down 0.78 percent in the last 24 hours.
The native token of Chiliz, the blockchain fintech provider for sports and entertainment, CHZ is trading at $0.11. Meanwhile, REN is changing hands at $0.065, down 6.09 percent in the last 25 hours. Both tokens are down 53.1 percent and 44.8 percent respectively quarter to date.
Altcoins not the only assets presenting an investment opportunity
Santiment’s data points to several other altcoins that are also in buying opportunity zones per their MVRV. These include OKB, AAVE, LINK, XRP, and MATIC, among others.
Meanwhile, the crypto market behavior analytics platform also previously noted that Bitcoin (BTC) is in this territory. In fact, the benchmark crypto has ranged in this territory since June when its MVRV measured for the last 5 years jumped into the negative.
At its current MVRV, the average active 5-year BTC trader is -34 percent underwater. The data marks a historical low for the metric according to Santiment. The analysis points to trends that indicate that trader panic is peaking and opportunities are ripe in the space.