Enquires@newsofbitcoin.com
Analytics firm Santiment says the majority of altcoins look set to ignite rallies after a month-long crypto correction.
Santiment says that the ongoing marketwide pullback has driven many altcoin traders to unload their stacks and incur heavy losses.
“According to our model, the mid-term gains and losses by average wallets indicate heavy realized losses across most altcoins. Over 85% of assets we track are in a historic opportunity zone when calculating the market value to realized value (MVRV) of wallets’ collective returns over one-month, three-month and six-month cycles.”
The MVRV is an on-chain indicator used to assess whether a crypto asset is undervalued or overvalued.
With the MVRV hovering at prime opportunity zones across multiple time frames for most altcoins, the analytics firm says that alts may be in a “historic position” to witness rallies.
“It may be justified to buy while there is growing fear seeping in from the crowd after all of these market cap dips.”
Amid the setup for a potential rally, Santiment notes that traders are starting to ignore volatile altcoins like Dogecoin (DOGE) in favor of crypto assets that have held up well amid choppy conditions.
“The total amount of non-empty Bitcoin wallets is rapidly growing despite choppy prices. Altcoin wallets for assets like Dogecoin have flattened after enormous rises earlier this year. Cardano is one of the few networks to see active wallets drop.”
At time of writing, DOGE is trading for $0.149, down over 34% from its 2024 high of $0.228. Meanwhile, Bitcoin is worth $64,000, a 13% decrease from its 2024 high of $73,650.
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Read More: Most Altcoins in ‘Historic Position’ to Rally As Traders Realize Heavy Losses Over the Past
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