– Altcoins in top 100 are struggling to recover, on-chain analysts have identified three cryptocurrencies that offer traders an opportunity.
– AUCTION, LINA and SRM are the three cryptocurrencies that are currently undervalued, according to Santiment’s model.
– Blue-chip DeFi tokens are preparing for a V-shaped recovery, these altcoins are likely to offer gains to holders in the short term.
Bitcoin price recovered from its temporary decline below the $26,000 level that followed Federal Reserve Chair Jerome Powell’s hawkish commentary in the Jackson Hole Economic Policy Symposium.Altcoins in the top 100 assets by market capitalization, are reeling from the aftermath of the price drop and attempting a recovery over the weekend.
Blockchain Center’s
Altcoin Season Index notes that it is Bitcoin season.This means, Bitcoin price outperformed altcoins in top 50, in the past 90 days.
While most
altcoins have suffered price drops throughout the month, Santiment’s analysts have identified three cryptocurrencies that are likely to recover soon.
Also read:
PEPE coin team issues statement on bad actors in founding team, 10 trillion PEPE tokens left
AUCTION, LINA and SRM are undervalued, present buying opportunity
On-chain
analysts at Santiment used a model to evaluate the MVRV (Market Value to Realized Value) ratio for altcoins, and identified three tokens in the opportunity zone.On-chain intelligence tracker, Santiment, defines the opportunity zone as “buy points” for investors.
Bounce (AUCTION), Linear (LINA) and Serum (SRM) are the three assets that pose an opportunity for traders, according to Santiment’s model, seen in the
chart below.The model uses the 30-day, 90-day and six month divergence to spot which altcoins are underbought, overbought and in their opportunity (to buy) and danger (to sell) zones.
Santiment chart to identify assets in opportunity and danger zones
According to the model, these three assets are likely to see a recovery in their prices in the short-term.Similarly, there are assets in the danger zone and heading to the danger zone that are overbought and are likely to see further sell-off.A few blue-chip DeFi tokens on the other hand, are currently profitable for traders.Find out more about them
here.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money.
This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens.If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents.
To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand.The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies.
Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined.It provides a clear picture of Bitcoin’s interest among investors.A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin.A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.
FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.
Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.
The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC history forecasts another crash in Q3 ahead of Jackson Hole Symposium
Bitcoin price shows a slow sideways movement around the $26,000 level after an outburst of volatility on August 17.
This sideways movement could face a further decline should history rhyme.
More Bitcoin News
Worldcoin price dips 46% in a month as Sam Altman’s project faces investigation worldwide
Worldcoin, a crypto project by ChatGPT founder Sam Altman, has garnered growing scrutiny from regulators and watchdogs worldwide.The project has earned a reputation for possible violations of national data protection laws, because of its eye-ball scanning orbs that enroll users.
More Worldcoin News
Coinbase Layer 2 based Magnet Finance rug pulls users for $6.4 million via price oracle manipulation
Coinbase exchange’s Layer 2 chain, BASE witnessed another rugpull on Magnet Finance, a lending protocol hosted on the blockchain.
The users of the protocol lost $6.4 million to the deployer, a scammer associated with exploits of Kokomo Finance and Solfire.
More Cryptocurrencies News
Altcoin capitulation is not complete as Cardano, MATIC, Shiba Inu holders sit on massive unrealized losses
A vast majority of Cardano (ADA), Polygon (MATIC) and Shiba Inu (SHIB) holders are sitting on unrealized losses, according to data from crypto intelligence platform IntoTheBlock.
More Cryptocurrencies News
Bitcoin: BTC history forecasts another crash in Q3 ahead of Jackson Hole Symposium
Bitcoin price shows a slow sideways movement around the $26,000 level after an outburst of volatility on August 17.This sideways movement could face a further decline should history rhyme.
Read full analysis.
