Shiba Inu ‘Underbought,’ While Bitcoin ‘Overbought’ Recently: Santiment

Name	Symbol	Market	Market Cap ($)	Algorithm
Uniswap	UNIUSD	Crypto	6,429,629,670	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Uniswap

UNIUSD

Crypto

6,429,629,670

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.460	-5.12%	8.53	8.53	8.53

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.460

-5.12%

8.53

High Price	Low Price	Open Price	Prev. Close	52 Week Range
9.05	8.39	8.97	8.99	3.83 - 17.03

High Price

Low Price

Open Price

Prev. Close

52 Week Range

9.05

8.39

8.97

8.99

3.83 - 17.03

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	23:13:40	0.000703	8.53	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

23:13:40

0.000703

8.53

USD

Price x Volume	Volume	Base Symbol	Related Pairs
6,675,106.83	770,299.85	UNI	UNIEUR	UNIGBP	UNIBTC

Price x Volume

Volume

Base Symbol

Related Pairs

6,675,106.83

770,299.85

Shiba Inu ‘Underbought,’ While Bitcoin ‘Overbought’ Recently: Santiment

01/07/2024 6:30pm

NEWSBTC

According to this metric, the on-chain analytics firm Santiment has revealed Shiba Inu has been underbought recently, while Bitcoin is overbought. MVRV Z-Score Suggests Shiba Inu Has Been Undervalued Recently In a new post on X, Santiment has discussed how some of the top cryptocurrencies are looking like right now on their MVRV Z-Score. The “Market Value to Realized Value” (MVRV) refers to a popular on-chain indicator that keeps track of the ratio between the market cap and realized cap for any given asset. The realized cap here is a capitalization model that calculates the total valuation of the cryptocurrency by assuming that the ‘real’ value of any token in circulation is equal to the price at which said coin was last transacted on the blockchain. Related Reading: Solana (SOL) Surges 18%, But Watch Out For Crowd FOMO As the previous transaction of any coin was the last time it changed hands, the price at its time would denote its cost basis. Thus, the realized cap is a sum of the cost basis of all tokens in the circulating supply. Put another way, this model measures the total capital the investors used to purchase the asset’s supply. The market cap, in contrast, keeps track of the value these investors hold. As such, the MVRV, which compares these two metrics, tells us about the profit/loss situation of the investors as a whole. In the context of the current topic, the actual metric of interest is the “MVRV Z-score.” This indicator takes the difference between the market cap and the realized cap and divides it by the standard deviation of the market cap over the asset’s entire history. Now, here is the chart shared by Santiment that shows the trend in this indicator for various coins in the sector: Based on the MVRV Z-Score, Santiment has defined three zones that relate to how far from its fair value the asset is. The chart shows that Shiba Inu (SHIB) and Uniswap (UNI) have had the indicator at -1.55 and -1.96 recently, putting these assets inside the ‘underbought’ territory. At these MVRV Z-Score values, the market cap is significantly lesser than the realized cap, meaning investors are widely lost. Generally, profit holders are a more likely source of selling pressure in the market, so when there are few of them left, price corrections can become less probable. Related Reading: Retail Losing Interest In Bitcoin? Volume Plunges 30% This is why assets are considered undervalued when the indicator drops below the -1 level for them. Due to a similar reasoning, values above 1 correlate to the coin being overvalued. Bitcoin (BTC), Ethereum (ETH), and Toncoin (TON) have recently been inside this latter territory, suggesting that their prices could be in danger of seeing bearish action. Shiba Inu and Uniswap, on the other hand, could be better set up for a price surge. SHIB Price At the time of writing, Shiba Inu is trading around $0.0000171, up 2% over the past week. Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com

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