• Altcoins are flashing bullish signals after last week’s crypto market downturn.
• Data from analytics firm Santiment finds altcoins in the underbought zone according to the Market Value to Realized Value metric.
• Bitcoin whales remain active during the slump, with large wallets not falling in numbers.
Altcoins Flashing Bullish Signals After Last Week’s Bloodbath
The crypto markets experienced a sharp downturn last week, however new data from market intelligence firm Santiment suggests that altcoins may be poised for a recovery. According to Santiment, altcoins are “overwhelmingly showing undervaluation” based on the Market Value to Realized Value (MVRV) metric, indicating that investors have an opportunity to capitalize on discounted prices.
Bitcoin Whales Remain Active During Downturn
Santiment notes that last week’s crash was one of the “sharpest drops” witnessed this year but also points out that Bitcoin whales have remained active throughout the decline. The analytics platform reports that there has been a large amount of $1 million+ BTC transactions and although average crypto returns have plummeted, the number of large wallets hasn’t changed significantly.
Undervaluation Suggests Opportunities for Investors
Investors are divided on how quickly the markets can recover from last week’s crash but regardless of their outlook, Santiment believes there is an opportunity for investors due to current undervaluation levels across most altcoins. As such, traders should monitor both MVRV and whale activity closely in order to determine when prices may begin trending upwards again.
At time of writing, Bitcoin is trading for $26,130 which is up fractionally over the last 24 hours but down 13% from its seven-day high of $29,652. Altcoin markets remain volatile as investors search for signs of recovery following last weeks’ sharp downturn.
Crypto markets experienced a sharp decline last week however new data suggests that some altcoins may be undervalued at current prices providing opportunities for savvy investors who can accurately identify potential entries and exits in these uncertain times.