• Altcoin holders have faced prolonged bear market conditions, with investors selling at a loss.
• Market Value to Realized Value (MVRV) of various altcoins have been in the underbought zone, indicating potential buying opportunities.
• The total cryptocurrency market capitalization has seen a notable downward trend since April 2021.
Altcoin Bear Market
Altcoin holders have been facing the brunt of a prolonged bear market, with weary investors selling at a loss. Santiment’s recent data on the Market Value to Realized Value (MVRV) of various altcoins revealed that most MVRVs were in the underbought region, hinting at possible buying opportunities for traders willing to capitalize on the prevailing selling pressure.
YTD Altcoin Market Cap
The CoinMarketCap’s data on the total cryptocurrency market capitalization showed that the peak value for altcoins was reached in April 2021 and surpassed $690 billion. Since then there has been a steady decline and as of writing, it stands around $596 billion – lower than its trillion dollar mark earlier in 2022.
Liquidations
CoinGlass reported 24-hour liquidations amounting over $35 million with Bitcoin experiencing most liquidations exceeding over $11 million. Ethereum and other altcoins also saw significant liquidation events mainly due to long positions being taken by traders and investors alike.
Why XRP?
Ripple’s XRP token has shown promising signs in this bearish climate as it attempts to regain its previous highs from 2018-2019 when markets were more bullish before BTC halving took place last year. On top of this, Ripple recently announced their intention to purchase up to $1 billion worth of XRP tokens from exchanges which is likely to increase investor confidence and buoy prices upwards if executed correctly and efficiently.
Ethereum Underbought Signals
ETH is another prime example as it displays an interesting ‘underbought signal’ according to Santiment’s data set indicating that there may be potential buying opportunities present for those looking to buy into ETH during these times where other coins are struggling against this bearish backdrop created by BTC’s strong momentum over recent months.
