Altcoins Show Bullish Signs After Price Plunge: MVRV Data

• Altcoins are showing signs of bullishness after suffering losses in the crypto market last week.
• Market intelligence firm Santiment uses the MVRV metric to measure whether or not altcoins are underbought or overbought.
• Bitcoin whales have remained active during the downturn, but there is still some uncertainty as to how quickly the markets can recover.

Altcoin Price Plunge Last Week

Last week saw a sharp decline in prices across most cryptocurrency markets, leading many investors to be uncertain about where the market will go from here. Market intelligence firm Santiment has used its MVRV (market value to realized value) metric to measure whether altcoins are undervalued or overvalued after the recent price plunge.

Altcoins Showing Undervaluation

The data from Santiment suggests that most altcoins are currently trading at an undervalue – a sign of potential bullishness for these coins. Despite the sharp drop in prices, Bitcoin whales have been active during this downturn and it appears that they are holding onto their investments rather than selling them off.

Polarization Among Investors

Investors remain divided on how quickly crypto markets may recover following last week’s crash. Some believe a quick bounce-back is coming while others see this as just the beginning of further losses. Despite this polarization, average returns for cryptocurrencies remain in an opportunity zone according to Santiment’s analysis.

Bitcoin Whales Remain Active

Though Bitcoin is down by 13% from its seven-day high, whales have remained extremely active throughout this period of volatility and uncertainty – evidenced by large transactions worth more than $1 million each being made on various exchanges. The number of large wallets has also stayed relatively consistent, indicating that whales still believe there is money to be made in crypto markets despite recent losses.

Uncertainty Remains About Recovery Rate

While altcoins may be flashing bullish signals after last week’s crash, uncertainty remains as to how quickly these markets can recover and return to their pre-crash highs. This means investors should continue to exercise caution when investing in digital assets until there is more clarity regarding where these markets are heading next.