- Low 30-day MVRV suggests potential bullish reversal for Bitcoin, Ethereum, XRP.
- Dogecoin and Cardano show strong bullish potential due to very low MVRVs.
- XRP’s approaching oversold conditions on the RSI indicate potential buying opportunities.
Key cryptocurrency metrics suggest a potential bullish reversal for Bitcoin, Ethereum, and certain altcoins, despite recent market volatility.
Data from Santiment, a top analytics firm, reveals that several major cryptocurrencies are exhibiting low 30-day Market Value to Realized Value (MVRV) ratios, a technical indicator that often precedes price increases.
The 30-day Market Value to Realized Value (MVRV), helps to understand the tendencies of short-term fluctuations in price. A lower 30-day MVRV increases the probability of a price bounce, and today’s charts present some coins that might be able to produce a bounce soon.
Santiment notes:
- Bitcoin with a 30-day MVRV of -4.0%, indicates a mildly bullish outlook
- Ethereum with a 30-day MVRV of -4.3%, shows a similar trend
- XRP with a 30-day MVRV of -3.5%, also falls into the mildly bullish category.
Dogecoin and Cardano stand out with significantly lower 30-day MVRVs of -16.7% and -12.6% respectively, suggesting a very bullish outlook for these cryptocurrencies. Conversely, Toncoin’s MVRV of -0.6% reflects a neutral stance.
Cardano (ADA) has exhibited a significant upward trend. The current price is $0.3958 , reflecting a daily gain of 4.18%. Despite a 28.92% decrease in trading volume, the volume remains substantial at $418,707,987, with a Volume/Market Cap ratio of 2.96%. Key levels to watch include immediate support around $0.367 and resistance at $0.396.
Historically, $0.38 has served as both support and resistance. The recent introduction of the Cardano Staking ETF has likely fueled the bullish momentum. To sustain this upward trend, breaking and holding above the $0.396 resistance is crucial, with volume changes offering insights into the strength of this movement.
At the time of writing, XRP is trading at $0.4916 with a marginal decline of 0.36%. The price has been moving sideways with occasional upward and downward momentum. The 24-hour trading volume is lower by 38.52%, amounting to $1,546,642,257 with Volume/Market ratio of 5.66%. The nearest support is $0.485 and resistance at $0.495.
Historically, support at $0.475 and resistance at $0.505 are significant levels to monitor. The fluctuating price within a narrow range suggests potential consolidation before a significant move. Volume changes will be crucial in understanding the strength behind future price movements.
Cardano/USD 1-day price chart, Source: Trading view
Cardano’s 1-day RSI reads 38.82, approaching oversold conditions, which could indicate a buying opportunity. However, the 1-day MACD trading below the signal line suggests bearish momentum in the short term.
XRP/USD 1-day price chart, Source: Trading view
Similarly, XRP’s 1-day RSI is 41.93, nearing oversold conditions, potentially signaling a buying opportunity. The 1-day MACD also shows bearish momentum as it trades below the signal line.
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