- Santiment’s market intelligence platform says crypto assets are split between extreme overbought and extremely underbought categories due to wide price performance bands.
- The outlook for OMG Network, Serum (SRM), and Vidt DAO suggest that they are underbought.
- Render, Injective Protocol and Bella Protocol are all extremely oversold.
In April, cryptocurrency prices were quite volatile. Several coins saw massive gains in price before falling back to their pre-rally level amid heavy selling. The outlook for some tokens indicates that they are in an extremely overbought state, while others are still underbought.
All of these products are heavily oversold. OMG Network, Serum (SRM), and Vidt DAO are all in this category.
Crypto price forecasts for OMG SRM and INJ
Analysts say that while Bitcoin (BTC), price has risen above $29,000 and is in a positive trend as bulls aim for a good start to May’s historically slow month, ending April above the important support level of $28,200 will be the most critical move.
Meanwhile, trading patterns for some altcoins suggest this might be a good buying moment – with market intelligence platform Santiment highlighting OMG, SRM and VIDT as some of the most underbought tokens.
Some altcoins are overbought, as the crypto market cap has shrunk to $1.25 trillion since recent highs. Santiment said on Friday that these tokens such as RNDR INJ and BEL are risky.
“Prices were more dispersed and less correlated in April than they had been in the previous months. Our MVRV model confirms that average trading returns are historically good times to purchase for some.$OMG, $SRM, $VIDTOthers may find it quite dangerous ($BEL, $INJ, $RNDR).”
📊 Prices have been more scattered and non-correlated to one another here in April than in previous months. And our MVRV model confirms average trading returns appear as historically good times to buy for some ( $OMG, $SRM, $VIDT), and quite risky for others ( $BEL, $INJ, $RNDR). pic.twitter.com/g6z1IAfySz
— Santiment (@santimentfeed) April 28, 2023
The MVRV (market-value-to-realized-value) model gives the ratio of a token’s market capitalization against its realized capitalization.
The MVRV ratio can be used to compare the two metrics of market cap and realized capital, i.e. the price of a token versus its fair value. Being above or below this “fair value” price helps traders assess the potential profitability of the token.
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