Analytical Firm Names Two Crypto Assets ‘Still Undervalued,’ Warns Explosive Altcoin Faces High Risk Of Reversal

Analytical Firm Names Two Crypto Assets ‘Still Undervalued,’ Warns Explosive Altcoin Faces High Risk Of Reversal

Crypto analytics firm Santiment is warning that the native token of the Bored Ape Yacht Club non-fungible token (NFT) ecosystem, ApeCoin (APE), has a high probability of reversal after a modest rally.

holyday He says that ApeCoin’s Market Value to Realized Value (MVRV) ratio sits at 15.981%, suggesting that it is relatively overvalued.

According to the cryptanalysis platform, the MVRV ratio of decentralized virtual worlds Decentraland (MANA) and The Sandbox (SAND) is -59.77% and -33.31%, respectively, suggesting that they are “still undervalued.”

“While altcoins are getting a bit of a reset after the good start in 2023, you can reallocate your portfolio based on assets that still show traders are underwater. While APE 1yr MVRV is at +16%, MANA (-60%) and SAND (-33%) may be more attractive for now.”

Source: Feeling

MVRV, which is the ratio of a crypto asset’s total market capitalization to its realized capitalization, is used to determine whether the price of that asset is above or below fair value.

The higher the ratio, the more likely a crypto asset will come under pressure to sell as holders take profits. An MVRV ratio in negative territory indicates a lower risk that the crypto asset is under selling pressure.

Since the beginning of the year, ApeCoin is up about 52% from a low of $3.62 to a high of $5.49 in 2023. Apecoin is trading at $4.54 at the time of writing.

Decentraland and The Sandbox are up 151% and 96% from their 2023 lows to their 2023 highs, respectively. Decentraland is trading at $0.639 at the time of writing, while The Sandbox changes hands at $0.696.

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