A recent Santiment report suggests that Shiba Inu, Cardano, and Dogecoin are poised to outperform Bitcoin, Ethereum, and XRP in the near future. The report highlights the positive outlook for SHIB, ADA, and DOGE based on the 30-day Market Value to Realized Value (MVRV) metric.
The MVRV indicator indicates that SHIB, ADA, and DOGE have a higher potential for a short-term rally, especially amidst the current downturn in the overall cryptocurrency market. Shiba Inu stands out with the most potential, boasting a 30-day MVRV ratio of -19.1%. Cardano and Dogecoin also show strong bullish signals with MVRV ratios of -12.6% and -16.7% respectively.
This data suggests that these altcoins are likely to experience a short-term rally due to their lower MVRV ratios compared to Bitcoin and Ethereum, which have mildly bullish MVRV ratios of -4.0% and -4.3% within the same timeframe. XRP also displays a mildly bullish MVRV ratio of -3.5%.
The report indicates that the current market conditions support a more significant rally for altcoins like Shiba Inu, ADA, and DOGE compared to leading coins like Bitcoin and Ethereum. These altcoins have demonstrated resilience in a volatile market and are well-positioned to leverage their MVRV for potential gains.
Shiba Inu, in particular, has the lowest MVRV ratio among large-cap cryptocurrencies, suggesting a potential price increase. Recent developments such as Crypto.com accepting SHIB as a funding option for Visa Cards further bolster the theory of an upcoming rally. The MVRV ratio serves as a crucial indicator of whether an asset is overvalued or undervalued based on its realized value.
With SHIB’s MVRV ratio at -19.1%, indicating that the asset is highly undervalued, there is a high likelihood of a rebound in its price. Similarly, Dogecoin and Cardano benefit from bullish MVRV ratios driven by significant investor interest and community support, respectively.
While Bitcoin and Ethereum remain dominant in the crypto market, their higher MVRV ratios suggest a lower potential for a short-term rally. As of now, SHIB is priced at $0.00001826 with a 3.7% increase, ADA at $0.3861 with a 4.3% increase, and DOGE at $0.124 with a 4.28% increase within 24 hours. Comparatively, BTC is trading below $66,000 at $65,190, while ETH and XRP show traces of a price decline.