- Underbought signals dominated altcoin MVRV as the bear market persisted
- Total altcoin market cap continued to dip, per YTD stats
The data sheet highlighted the MVRV across different time frames for altcoins like Polygon [MATIC], Ripple [XRP], and Ethereum [ETH]. These cryptocurrencies displayed underbought signals, with only a few other altcoins entering the overbought zone.
As most MVRVs reside in the underbought region, weak-handed investors began selling their holdings, intensifying selling pressure and pushing the altcoin market further below the zero line. The data encompassed MVRV signals spanning from a seven-day timeframe to a one-year timeframe, providing a comprehensive overview of the market sentiment.
This level of MVRV presented an attractive buying opportunity for traders willing to capitalize on the prevailing selling pressure.
Current altcoin market capitalization
CoinMarketCap’s data on the total cryptocurrency market capitalization revealed a noticeable downward trend in recent times. An examination of the year-to-date market cap indicated that the peak market cap for altcoins was reached in April, surpassing an impressive $690 billion.
However, a subsequent decline took hold, and at the time of writing, the market cap hovered around $596 billion.
Taking a broader view of the market cap, it became evident that the decline commenced in 2022, when it dropped from over a trillion dollars. As of this writing, the total crypto market cap, including Bitcoin [BTC], exceeded $1 trillion. This reflected the overall value of the entire cryptocurrency market.
Long positions dominate liquidations
CoinGlass reported a substantial 24-hour liquidation amounting to over $35 million at the time of writing. Bitcoin accounted for the largest share, with liquidations exceeding $11 million. However, Ethereum and other altcoins also experienced significant liquidation events, primarily affecting long positions.
This dominance of long positions in the liquidations suggested that the prices of these assets declined.
Amidst these liquidations and market dynamics, several indicators suggested that the bear market might be approaching its end. The Market Value to Realized Value (MVRV) ratio is one such indicator.
The MVRV ratio reaching certain levels could indicate potential buying opportunities. If buying pressure increases, it could lead to a bullish trend.