| Angle | Score | Explanation |
|---|---|---|
| Market Sentiment | 5 | The news indicates that Shiba Inu (SHIB) traders are experiencing losses according to the MVRV Z-Score. This could potentially impact market sentiment negatively as investors might be hesitant to enter or increase their holdings in SHIB due to perceived losses. However, it also suggests that buying these assets now may offer high returns based on historical trends, which could offset negative sentiment for some investors. |
| Policy and Regulation | 4 | The news highlights a technical indicator that suggests certain altcoins, including Shiba Inu (SHIB) and XRP, are seeing more unrealized losses than profits among their investors. This could potentially influence trading decisions by suggesting that these assets might offer better buying opportunities for those expecting market surges in the future. However, it does not directly impact policy or regulation, as it is focused on market sentiment and technical analysis rather than legal frameworks or guidelines. |
| Technical Development | 7 | The impact of this news on technical development is moderate to high. The MVRV Z-Score indicator provides valuable insights into market sentiment and investor behavior for various cryptocurrencies like Shiba Inu (SHIB) and XRP. This information can influence trading decisions, potentially leading to increased liquidity or price volatility around the assets with a higher likelihood of profit-taking. The score reflects that this news could significantly impact traders’ strategies based on historical patterns associated with high MVRV Z-Score values. |
| Economic Factors | 5 | The impact on economic factors of this news is moderate. The MVRV Z-Score analysis suggests that XRP, Cardano, Shiba Inu, Chainlink, Polygon, and Uniswap have a higher unrealized loss than profit among their investors. This could indicate potential market shifts where the price dynamics might favor these assets due to reduced selling pressure from those in losses. Investors seeking opportunities for high returns might consider buying into such assets based on this indicator’s historical relationship with price tops. However, it is important to note that cryptocurrency markets are highly volatile and subject to rapid changes influenced by various factors not solely dependent on technical indicators. |
| Security Events | 3 | The news discusses how certain altcoins like Shiba Inu and XRP are showing a high level of unrealized losses according to the MVRV Z-Score. While this information may be of interest to traders and investors, it does not directly impact security events in terms of cybersecurity or digital asset protection. The score reflects its relevance to market analysis and trading decisions. |
| Institutional Investment | 7 | The news about the bullish divergence on the MVRV Z-Score for Shiba Inu and XRP impacts institutional investment by providing insight into potential market trends. It suggests that, based on historical data, investing in assets with high unrealized loss could lead to higher returns when the market surges. This information might encourage some institutions to consider buying these coins as they might be undervalued or close to a turning point for growth. However, it should be noted that cryptocurrency investments are risky and this news alone does not guarantee future performance. |
| Market Supply and Demand | 7 | The news suggests that Shiba Inu (SHIB) is experiencing a bullish divergence on the MVRV Z-Score, indicating that its average traders are currently facing losses. Given historical trends, this might lead to an increase in demand for SHIB as buyers anticipate a price surge when profits start increasing again. However, it’s essential to consider other market conditions and not solely rely on this indicator. |
| Global Events | 3 | The news about Shiba Inu and XRP having a high MVRV Z-Score suggests that their traders are experiencing losses. However, this information is purely based on technical indicators and does not have a direct impact on global events or geopolitical situations. The score reflects the relevance of cryptocurrency market trends to financial markets but acknowledges that it might not significantly influence broader economic conditions. |
| Competing Currencies Market | 5 | The news indicates that Shiba Inu (SHIB) is among altcoins seeing a bullish divergence on the MVRV Z-Score, suggesting its traders are currently experiencing losses. This could potentially lead to an increase in buying interest and a price surge as some investors may view this as a good time to buy given past historical patterns. However, the overall impact might be moderate due to the volatility of cryptocurrency markets and other factors influencing price movements. |
| Media Coverage | 7 | The news evaluates how certain cryptocurrencies are performing based on an indicator called MVRV Z-Score. This has potential impact on media coverage as it could influence public perception of these assets, possibly affecting trading decisions. The score reflects the information’s relevance to market analysis and investment strategies. |
| Overall Score | 5.3 |
Shiba Inu, XRP Forming Bullish Divergence, Analytics Firm Reveals
The on-chain analytics firm Santiment has revealed how Shiba Inu and XRP are among altcoins that are seeing a bullish divergence on the MVRV Z-Score.
MVRV Z-Score Says XRP And Shiba Inu Traders Are Seeing Losses CurrentlyIn a new post on X, Santiment has discussed how the various top coins in the cryptocurrency sector look on the MVRV Z-Score.
At the same time, XRP (XRP), Cardano (ADA), Shiba Inu (SHIB), Chainlink (LINK), Polygon (MATIC), and Uniswap (UNI) are witnessing their investors carrying a higher unrealized loss than profit.
As such, a high MVRV Z-Score has historically led to tops for any cryptocurrency’s price.
Shiba Inu and Uniswap are particularly seeing the most deviation between the market and realized cap.
The on-chain analytics firm Santiment has revealed how Shiba Inu and XRP are among altcoins that are seeing a bullish divergence on the MVRV Z-Score.
MVRV Z-Score Says XRP And Shiba Inu Traders Are Seeing Losses Currently
In a new post on X, Santiment has discussed how the various top coins in the cryptocurrency sector look on the MVRV Z-Score. The “Market Value to Realized Value (MVRV) ratio” is a popular indicator that, in short, measures the deviation between the total value held by the investors of an asset (that is, the market cap) and what they used to purchase it (the realized cap).
When the value of this indicator is positive, it means the holders of the given coin as a whole are currently holding net unrealized profits. On the other hand, the metric being below zero suggests the dominance of losses in the market.
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Now, here is the chart shared by the analytics firm that shows the trend in the MVRV Z-Score for different top assets by market cap over the past few months:
As displayed in the above graph, Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Toncoin (TON) are all currently in the positive territory of the MVRV Z-Score, suggesting that their average traders are currently enjoying profits.
At the same time, XRP (XRP), Cardano (ADA), Shiba Inu (SHIB), Chainlink (LINK), Polygon (MATIC), and Uniswap (UNI) are witnessing their investors carrying a higher unrealized loss than profit.
Generally, the investors in profits are more likely to sell their coins, and the likelihood of this profit-taking only increases with more gains they hold. As such, a high MVRV Z-Score has historically led to tops for any cryptocurrency’s price.
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Of the four assets in positive territory of the indicator right now, Toncoin has the indicator at the highest level, suggesting that a selloff due to profit-taking could be probable for it.
In the case of the coins inside the negative region, their prices could see a bullish outlook instead, as there may not be many sellers left for them now. Shiba Inu and Uniswap are particularly seeing the most deviation between the market and realized cap.
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“If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in have a greater probability of netting high returns for you,” notes Santiment. As such, coins like SHIB may be offering the best buying window right now, according to the MVRV Z-Score.
SHIB’s Price Analysis
Shiba Inu has consolidated sideways over the past month as its price still trades around the $0.0000168 mark.
Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com
Original Link:https://www.newsbtc.com/shiba-inu/shiba-inu-xrp-altcoins-bullish-divergence/