Cryptocurrency analytics firm Santiment outlined altcoins that could potentially see a bullish performance as digital asset markets rally on Friday.
Santiment aims to measure whether an asset is undervalued or overvalued by analyzing its Market Value to Realized Value (MVRV) Z-score.
Assets with low MVRV Z-scores are considered undervalued, while assets with high MVRV Z-scores are considered overvalued.
Realized value aims to record the price at the last point of change for each asset and measure how many holders are making profits or losses.
Santiment explains:
“If you believe the market is going to surge, you are more likely to get a high return if you buy assets that history shows have suffered the most.”
Santiment points out that distressed assets with low MVRV Z-scores include decentralized exchange (DEX) Uniswap (UNI), the mime coin Shiba Inu (SHIB), blockchain scaling solution Polygon (MATIC), decentralized oracle network Chainlink (LINK), smart contract platform Cardano (ADA), and alternative payment coin XRP.
High yield assets that are currently risky buys include layer 1 blockchains TON Coin (TON), Bitcoin (BTC), Ethereum (ETH) and the ultimate meme asset, Dogecoin (DOGE).
While Santiment does not have MVRV data for Stellar (XLM), the analytics firm noted that the XRP competitor’s social volume and sentiment were on the negative side, which it said was a “slightly bullish” signal for the asset.
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