Santiment Reveals Positive Metrics for XRP and Cardano Indicating a Coming Rebound

Santiment highlights the MVRV ratio, indicating that XRP and Cardano are currently undervalued and poised for a strong comeback.
In the midst of a significant downturn in the cryptocurrency market, major assets such as Bitcoin, XRP, and Cardano have hit notable lows. Despite the prevailing bearish sentiment, recent market data from Santiment and insights from analysts suggest a potential resurgence for XRP and Cardano.
XRP and Cardano are currently undervalued
A blockchain analytics firm, Santiment, recently released promising data on X, signaling a bullish outlook for various cryptocurrencies. They emphasized the Market Value to Realized Value (MVRV) ratio, a key metric utilized to gauge market sentiment and potential price movements.
The 30-day MVRV ratio compares an asset’s current price to the average price at which it was acquired over the past 30 days. Santiment suggests that a lower MVRV ratio indicates an undervalued asset, hinting at a higher likelihood of a price recovery in the near future.
According to Santiment’s data, Bitcoin’s 30-day MVRV stands at -4.0%, indicating a slightly bullish outlook. Ethereum follows with -4.3%, also suggesting a mild bullish sentiment. XRP, with a 30-day MVRV of -3.5%, and Cardano, with a more significant -12.6%, both show strong potential for a rebound.
Interestingly, market data confirms that Cardano and XRP are currently in undervalued territory. ADA’s relative strength index (RSI) dropped to 28.8 yesterday during a price decline to $0.35, confirming its undervaluation. Additionally, XRP’s RSI is at 44, entering the undervalued zone.
Analysts anticipate a rebound for ADA and XRP
Meanwhile, analysts agree with Santiment’s positive outlook, particularly for XRP and Cardano. Cryptobilbuwoo, a market analyst, shared his analysis on X based on a weekly chart. He highlighted that when ALT.D, a measure of altcoin dominance, retests an upward trend line, XRP tends to rise, positively impacting ALT.D. His technical analysis predicts a potential rise for XRP to $271, indicating an imminent technical rebound. XRP is currently trading at $0.4915.
On the other hand, Cardano’s outlook was previously analyzed by Sebastian, another market expert, who noted in a recent post on X that the recent price drop to $0.40 presents a significant buying opportunity. He recommended implementing a Dollar-Cost Averaging (DCA) strategy, where investors purchase Cardano at regular intervals to mitigate market volatility. Sebastian mentioned that if Bitcoin continues its downward trend, Cardano could drop to $0.38, but he remains optimistic about a substantial bounce once the current market downturn stabilizes.
Interestingly, this projection recently unfolded as ADA plummeted to a yearly low of $0.3575 yesterday. The sharp decline led to Cardano’s significantly low MVRV and RSI. ADA is now trading at $0.3920, marking a 2.19% increase today in an effort to surpass $0.40.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are personal and do not represent The Crypto Basic’s views. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.