Exploring the Bullish Signals in Altcoins According to Crypto Analytics Firm Santiment

In the ever-evolving world of cryptocurrencies, keeping an eye on market trends and analytics is crucial for both seasoned investors and newcomers. Recently, the crypto analytics firm Santiment shared insights that have caught the attention of the digital asset community. As markets showed an upward tick on Friday, Santiment's analysis could help pinpoint which altcoins have the potential to soar.

Key Takeaways:

• Santiment uses the MVRV Z-score to assess if assets are undervalued or overvalued.
• Altcoins like Uniswap (UNI), Shiba Inu (SHIB), and Polygon (MATIC) are seen as undervalued.
• High-gain, riskier assets include Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
• Stellar (XLM) shows a "mildly bullish" sign despite the lack of MVRV data, due to negative social volume and sentiment.

Santiment's method of analysis focuses on the market value-to-realized value (MVRV) Z-score. This particular metric is designed to determine whether digital assets are currently undervalued or overvalued. Specifically, a low MVRV Z-score suggests that an asset is undervalued, making it potentially a good buying opportunity. Conversely, a high MVRV Z-score indicates an asset might be overvalued.

Realized value, another key concept in Santiment's analysis, represents the price at which an asset was last moved. It essentially measures the proportion of holders who are currently in profit or at a loss. According to Santiment, "If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in have a greater probability of netting high returns for you."

Among the altcoins highlighted by Santiment as undervalued based on their low MVRV Z-scores are:

• Uniswap (UNI): A leading decentralized exchange platform.
• Shiba Inu (SHIB): A popular memecoin with a vast community.
• Polygon (MATIC): A blockchain scalability platform.
• Chainlink (LINK): A decentralized oracle network.
• Cardano (ADA): A smart contract platform.
• XRP: A digital payment protocol.

On the flip side, the analytics firm identifies assets currently seen as riskier buys due to their high-gain potential. These include:

• Toncoin (TON): A layer-1 blockchain.
• Bitcoin (BTC): The original cryptocurrency.
• Ethereum (ETH): The leading smart contract platform.
• Dogecoin (DOGE): The top memecoin by market cap.

Interestingly, Santiment doesn't have MVRV data for Stellar (XLM), yet it points out that the asset's social volume and sentiment have been trending negatively. In the crypto world, such trends can be considered "mildly bullish," suggesting that XLM, a competitor to XRP, might be gearing up for a positive shift in market dynamics.

Engaging with the Community

Are there altcoins on this list you're keeping an eye on? Or perhaps there's one you believe is undervalued but didn't make the cut? Share your thoughts and insights in the comments below, and let's dive deeper into the dynamic world of cryptocurrency investments together.

Remember, the crypto market is highly volatile, and thorough research combined with a cautious approach is essential when considering investments.