- Underbought signals dominated MVRV altcoin as bear market persisted
- Total altcoin market capitalization continued to fall, according to YTD statistics
On May 26, Santiment released a comprehensive data set, revealing the Market Value at Realized Value (MVRV) of various altcoinsand unfortunately, traders have taken losses.
The data sheet highlighted the MVRV in different time frames for altcoins like Polygon [MATIC], Vibe [XRP]and Ethereal [ETH]. These cryptocurrencies showed signs of being underbought, with only a few other altcoins entering the overbought zone.
Source: Feeling
As most of the MVRV resides in the underbought region, weak investors began to sell their holdings, intensifying the selling pressure and pushing the altcoin market further below the zero line. The data spanned MVRV signals spanning from a seven-day time frame to a one-year time frame, providing a comprehensive overview of market sentiment.
This MVRV level presented an attractive buying opportunity for traders willing to capitalize on the prevailing selling pressure.
Current altcoin market capitalization
CoinMarketCaps Data on the total cryptocurrency market capitalization revealed a notable downward trend of late. An examination of the year-to-date market capitalization indicated that the peak market capitalization for altcoins was reached in April, surpassing an impressive $690 billion.
However, there was a subsequent decline, and at the time of writing, the market capitalization was around $596 billion.
Source: CoinMarketCap
Taking a broader view of the market capitalization, it became clear that the decline began in 2022, when it fell from over a trillion dollars. At the time of writing, the total crypto market capitalization, including Bitcoin [BTC], exceeded one trillion dollars. This reflected the general value of the entire cryptocurrency market.
Long positions dominate liquidations
glass coin reported a substantial 24-hour liquidation amounting to over $35 million at the time of this writing. Bitcoin accounted for the largest share, with settlements exceeding $11 million. However, Ethereal and other altcoins also experienced major liquidation events, which mainly affected long positions.
This dominance of long positions in liquidations suggested that the prices of these assets fell.
Source: CoinGlass
Amid these selloffs and market dynamics, several indicators suggested that the bear market may be coming to an end. The ratio of market value to realized value (MVRV) is one such indicator.
MVRV reaching certain levels could indicate potential buying opportunities. If buying pressure builds, it could lead to an uptrend.
