According to Saniment MVRV indicator released by a crypto analyst, major cryptocurrencies Cardano and Dogecoin appear to be currently “undervalued” at recent prices. ADA is trading at $1.20 while Dogecoin is trading at $0.159 at press time.
#Cardano hasn’t been this undervalued since the COVID crash in March 2020!
—Ali Martinez (@ali_charts) February 9, 2022
MVRV, or Market Value to Realized Value, is a ratio that helps cryptocurrency investors determine whether the price of a certain asset is fair or not. MVRV is used to determine market highs and lows as a standalone metric. The indicator can be considered a success based on the previous data, as it correctly predicted the latest XRP price surge.
The lower the MVRV ratio, the higher the possibility of an upward price movement, as this key index calculates the average profit or loss of previous addresses bought.
For Cardano (ADA), the MVRV 365D which measures the profit or loss of addresses that have acquired ADA in the past 365 days suggests that ADA holders are seeing an average loss of -26%. This on-chain metric is currently hovering at -36%, suggesting that Dogecoin is in the “opportunity zone”.
The whales keep buying
Large holders, or whales, are generally known to use periods of decline and consolidation to accumulate their favorite tokens at a discount.
According to data from WhaleStats, Cardano has made a comeback among the top 10 tokens bought by BSC whales. This comes after a top BNB whale bought five million ADA.
WhaleStats reports that a BNB Whale ranking fifth among the top 1,000 BNB whales he tracks bought five million ADA, worth $5,950,000.
Also recently, a BNB whale ranked 75th on WhaleStats also added 8,999,983 DOGE, or $1,471,326, to his wallet.