According to the Santiment MVRV indicator posted by a crypto analyst, top cryptocurrencies Cardano and Dogecoin seem to be currently ”undervalued” at recent prices. ADA trades at $1.20 while Dogecoin trades 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 Valued to Realized Value, is a ratio that allows cryptocurrency investors to determine whether or not a certain asset’s price is fair. MVRV is utilized to determine market tops and bottoms as a stand-alone metric. The indicator might be regarded as successful based on previous data because it correctly predicted the latest XRP price surge.
The lower the MVRV ratio becomes, the higher the possibility of upward price movement, as this key index calculates the average profit or loss of previous addresses that bought.
For Cardano (ADA), the MVRV 365D that measures the profit or loss of addresses that acquired ADA in the last 365 days suggests that ADA holders sit at an average loss of -26%. This on-chain metric currently hovers at -36%, suggesting that Dogecoin sits in the “opportunity zone.”
Whales keep buying
Large holders, or whales, are typically known to use periods of dip and consolidation to accumulate their favorite tokens at a discount.
According to WhaleStats data, Cardano has made a comeback among the top 10 purchased tokens by BSC whales. This comes after a top BNB whale purchased a whopping five million ADA.
WhaleStats reports that a BNB whale ranking fifth among the largest 1,000 BNB whales it tracks bought five million ADA, or $5,950,000 worth.
Also recently, a BNB whale ranked 75th on WhaleStats also added 8,999,983 DOGE, or $1,471,326 worth, to his portfolio.