A new report by on-chain analytics firm Santiment reveals “very bullish” positions for Dogecoin (DOGE), Shiba Inu (SHIB), and Cardano’s ADA, based on the market value to realized value (MVRV) metric.
As per Santiment’s report, the lower the MVRV of a crypto asset, the higher the possibility of soon exploding in a short-term price upsurge.
DOGE, SHIB, And ADA: Crucial Metric Shows Extreme Bullishness
The crypto market recently faced one of the worst dips in a month, with almost half a billion in various assets being liquidated in the space of hours. The Bitcoin price has been consolidating within a well-established trading range for months since the benchmark crypto’s block subsidy halving in April. Nevertheless, a key Dogecoin and Shiba Inu metric paints a bullish picture, suggesting the altcoins could be preparing for big moves to the upside.
In a recent post on the X (formerly Twitter) platform, Santiment shared the recent 30-day MVRV of seven of the top ten largest cryptocurrencies by market cap. This index shows the extent to which a cryptocurrency is undervalued or overvalued.
Santiment notes that the MVRV ratios of Dogecoin (DOGE) and Cardano (ADA) are very low — -16.7 % for DOGE and -12.6% for ADA — which essentially signifies the tokens are “very bullish.” According to Santiment’s analysis, both ADA and DOGE have the highest odds of witnessing a short-term price rally.
As for the other cryptocurrencies, including Bitcoin, Ethereum, Ripple’s XRP, and Telegram-linked Toncoin (TON), their MVRV readings are “mildly bullish” and “neutral.”
The lower a cryptocurrency’s 30-day MVRV is, the higher the likelihood we see a short-term bounce:
Bitcoin: -4.0% (Mild Bullish)
Ethereum: -4.3% (Mild Bullish)
XRP: -3.5% (Mild Bullish)
Dogecoin: -16.7% (Very Bullish)
Toncoin: -0.6% (Neutral)
Cardano: -12.6% (Very Bullish) pic.twitter.com/zHGg4t3qo1— Santiment (@santimentfeed) June 19, 2024
When asked what Shiba Inu’s MVRV ratio is, Santiment replied: “-19.1%, lowest among these large caps.” This means that SHIB is even more bullish than DOGE and ADA at the moment.
At the time of writing, DOGE, ADA, and SHIB were valued at $0.1233, $0.3873, and $0.00001831, respectively. The world’s top meme coin, DOGE, is up 3.5% on the day overall, while the price of ADA has jumped 4.4% over the last 24 hours. Canine-themed SHIB has gained 3.8% during the same timeframe.
That being said, the market is waiting for signals from the United States Securities and Exchange Commission (SEC) over the fate of the spot Ether exchange-traded funds (ETFs), which analysts predict could begin trading early next month.
