Analytics firm Santiment predicts that a number of altcoins are likely to experience significant rallies following a month-long correction in the crypto market. Santiment’s analysis shows that the recent marketwide pullback has led many altcoin traders to sell off their holdings and suffer substantial losses. Based on their model, Santiment reveals that the majority of altcoins are currently in a “historic opportunity zone” when considering the market value to realized value (MVRV) of wallets’ collective returns over various time frames. MVRV is an on-chain indicator used to determine whether a crypto asset is undervalued or overvalued. With this indicator suggesting prime buying opportunities for altcoins, Santiment believes that these assets are in a favorable position to witness rallies. Despite the volatility of altcoins like Dogecoin, traders are starting to favor crypto assets that have performed well during turbulent market conditions. Santiment points out that the number of non-empty Bitcoin wallets continues to increase, indicating sustained interest in Bitcoin despite price fluctuations. However, altcoin wallets for assets like Dogecoin have remained stagnant after significant gains earlier this year. Cardano, on the other hand, has experienced a drop in active wallets. As of now, Dogecoin is trading at $0.149, down 34% from its 2024 high, while Bitcoin is valued at $64,000, a 13% decrease from its 2024 peak. Santiment suggests that now may be a good time to buy altcoins, as fear and uncertainty have set in among investors due to recent market cap declines.
