-
Ethereum sits at -14.3% undervalued, Bitcoin at -6.9%, suggesting recent buyers face losses but long-term gains possible.
-
Most large-cap cryptos hover in mildly to strongly undervalued zones, hinting at limited short-term downside.
-
Santiment recommends dollar-cost averaging during periods of market pain for historically strong long-term returns.
Crypto traders may want to take note as major assets look undervalued, as per the latest analysis from Santiment. The crypto analytics platform pointed out the important information from the 30-day MVRV metric, which tracks whether new buyers are in profit or in loss.
The analysis concentrated on Cardano ($ADA), Ethereum ($ETH), Bitcoin ($BTC), XRP ($XRP), and Chainlink ($LINK). According to Santiment, Bitcoin is somewhat undervalued by -6.9%, while Ethereum is really overvalued by -14.3%. Cardano, XRP, Chainlink, and other cryptocurrencies are all trading below their fair value. Traders may therefore see this as a sign of a possible buying opportunity.
The MVRV (Market Value to Realized Value) ratio measures a coin’s current market price against the price at which it last moved on-chain. In simple terms, it shows whether investors are sitting on profits or losses. High MVRV numbers suggest potential profit-taking, while low or negative values show that holders are feeling the pain.
Consequently, Santiment recommends buying or dollar-cost averaging during times of widespread losses. “Buying and dollar cost averaging when on-chain data shows a lot of pain among the average wallet, as it does now, is historically a sound strategy,” the platform stated.
Market Analysis: Trends and Implications
Santiment’s chart divides the prices of cryptocurrencies into five categories: strongly overvalued, mildly overvalued, neutral, mildly undervalued, and strongly undervalued. Currently, most of the major cryptocurrencies are in the mildly to strongly undervalued category.
This means that most people who just bought the cryptocurrencies are probably losing money, which could reduce the pressure on the sellers to sell since they want to make money. When the price of cryptocurrencies is overpriced, it will be at its peak, and when it is underpriced, the market will be at its lowest point.
The lower valuations also suggest overall market sentiment has cooled compared to previous highs. In simple terms, the market is calmer and trading at quieter levels. Analysts note that downside risk may be limited in the near term, though this doesn’t guarantee prices will bounce immediately.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin drops below $63,000, triggering extreme panic; key support levels face testing
February 24 News, Bitcoin continues to be under pressure amid market "extreme panic" sentiment, with the price once dropping to around $62,700. It then rebounded slightly above $63,000, with a 24-hour decline of over 3%. The overall crypto market also weakened, with the total market capitalization of digital assets falling back to approximately $2.25 trillion. Meanwhile, mainstream assets such as Ethereum, XRP, and Solana have all experienced varying degrees of correction, indicating a significant cooling of risk appetite.
Presto Research analyst Min Jung pointed out that this recent drop below $63,000 for Bitcoin reflects more of a deterioration in market sentiment rather than a single fundamental change. Macroeconomic uncertainties regarding tariffs and rising geopolitical risks have led funds to shift toward safe-haven assets, weakening short-term demand elasticity for crypto assets. The Fear and Greed Index has fallen to 5, in the extreme pessimistic range in history, indicating that market sentiment is approaching a temporary bottom.
GateNewsBot8m ago
XRP Holds $1.32 Support as Weekly Volatility Expands
XRP is experiencing increased volatility as it trades near $1.32, with the 20-week moving average acting as resistance and lower Bollinger Band suggesting a potential decline to $1.274. The prevailing downward trend poses risks, with support levels being tested.
CryptoFrontNews50m ago
Why Bitcoin And Crypto Prices Won’t Stop Crashing
The prices of different cryptos have been going down again, and despite hopes that the rebounds would lead into sustainable growth, various cryptos continue struggling following BTC downward trajectory. Every time Bitcoin tries to stabilize, another wave of selling pressure seems to hit the
CaptainAltcoin1h ago
Is the Bitcoin price discovery power shifting to CME? Institutional funds reshaping BTC pricing logic and global macro linkage
February 24 News, the Bitcoin price discovery mechanism is undergoing structural changes, with trading focus gradually shifting towards regulated derivative markets such as the Chicago Mercantile Exchange (CME Group). As institutional participation continues to rise, Bitcoin prices are no longer solely driven by on-chain transactions and retail sentiment, but are increasingly influenced by open interest in futures contracts, institutional hedging needs, and macro risk appetite. Currently, Bitcoin is fluctuating around $63,000, indicating that the market remains in an institutional-led range-bound phase.
Industry expert Karl Naim pointed out that traditional hedge funds and asset management firms prefer to allocate Bitcoin exposure through familiar compliant derivative instruments rather than relying on offshore markets with higher counterparty risk. The advancement of 24/7 derivative trading mechanisms is weakening the historical advantage of the crypto-native market’s “7×24 hours liquidity,” enabling institutions to continuously hedge risks and adjust positions, thereby compressing arbitrage opportunities between futures and perpetual contracts.
GateNewsBot1h ago
