Bitcoin surpassed $83,000 as investor confidence in risky assets increased following strong earnings reports from US technology companies. This also had a positive impact on altcoins, with Ethereum and other major altcoins seeing gains of between 3% and 10%.
At this point, Zcash (ZEC) showed the biggest increase among the major cryptocurrencies. Following the news that the mainnet activation block height for the upcoming network upgrade ‘NU7’ has been finalized, Zcash increased by 13% to reach $1,270.
While Bitcoin and altcoins are experiencing upward movement, on-chain analytics platform Santiment has released critical data regarding XRP and Dogecoin.
At this point, Santiment noted that XRP and DOGE are in relatively favorable buying zones based on on-chain data.
According to Santiment, XRP and DOGE are signaling buying opportunities!
According to data shared by Santiment, Dogecoin’s 365-day MVRV (Minimum Viable Loss) is approximately 0.74. Santiment suggests this indicates that recent buyers are, on average, experiencing deep losses, and that the average loss for investors over the past year is more pronounced compared to XRP.
XRP, on the other hand, is at 0.92 on the same indicator, revealing that investors are, on average, in the loss zone. This indicates that recent buyers are, on average, at a loss. According to Santiment, such low MVRV values can create more favorable buying conditions compared to periods in the past when investors made significant profits.
Bitcoin, Ethereum, and Chainlink Are More Balanced!
Santiment, which also covered Bitcoin, Ethereum, and Chainlink, stated that the 365-day MVRV values for BTC, ETH, and LINK ranged between 0.97 and 1.04.
This range indicates that the average profit and loss for investors in these assets is close to the break-even level.
Therefore, these three cryptocurrencies show neither significant profit-taking pressure nor a widespread risk of capitulation.
Low MVRV Doesn’t Guarantee Improvement!
MVRV measures investors’ unrealized profit and loss by comparing market value to realized value. A rise in the indicator may suggest increased profit-taking, while a fall may indicate weakening selling pressure.
However, Santiment cautioned that the MVRV data for XRP and DOGE does not guarantee a price increase, advising investors to also consider trading volume, market trends, and other on-chain indicators when making decisions.
*This is not investment advice.
Continue Reading: Is an Opportunity on the Horizon for Dogecoin (DOGE) and XRP? Santiment Reveals Latest Data! Here’s What It Means