Crypto intelligence firm Santiment is looking at the sentiment of market participants across large-cap altcoins to determine whether the markets are ready to bounce.
In a new tweet, Santiment says that traders and investors of top digital assets such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL) and Binance Coin (BNB) do not seem optimistic about the prospects of their holdings.
“Have we dipped low enough where there’s ‘blood in the streets?’ According to crowd sentiment, there’s quite a bit of fear, uncertainty and doubt (FUD) and bearishness for BTC, ETH, BNB, SOL, and ADA. As illustrated by this chart, negativity correlates most commonly with bounces.”
Taking a closer look at leading smart contract platform ETH, Santiment says that is looking at the MVRV (market value to realized value) metric, which divides an asset’s market capitalization by its realized value. Analysts use the MVRV metric to spot market tops and bottoms.
According to the crypto insights firm, the MVRV metric is at a six-month low, implying lesser risk for new market entrants.
“Ethereum bottomed out at $3,118…time to panic? Well, according to ETH’s average MVRV, this is the most ‘pain’ traders have felt since July, and price jumped +118% from that pain point. Also, active addresses vs. price looks quite bullish.”
Ethereum is exchanging hands at $3,194 at time of writing, a 17.5% decrease from its seven-day high of $3,878.
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