Santiment says major crypto assets are showing signs of undervaluation based on the 30-day MVRV metric, which tracks whether recent buyers are holding profits or losses. In its latest analysis, Bitcoin (BTC) was listed at -6.9% and Ethereum (ETH) at -14.3%. Cardano (ADA), XRP, Chainlink (LINK), and several other large-cap tokens were also described as trading below fair value.
30-day MVRV points to losses for newer buyers
MVRV, or Market Value to Realized Value, compares a coin’s current market price with the price at which it last moved on-chain. The signal is fairly direct. Higher readings can suggest that holders are sitting on enough profit to take money off the table, while low or negative readings indicate that many wallets are under pressure. Right now, that pressure appears broad. Recent buyers across much of the large-cap market are likely underwater.
Santiment’s chart sorts assets into five valuation bands: strongly overvalued, mildly overvalued, neutral, mildly undervalued, and strongly undervalued. Most major cryptocurrencies are now sitting in the mildly to strongly undervalued range. That places the market in a very different position from periods when stretched valuations left more room for profit-taking.
Santiment favors buying or DCA during periods of pain
Based on that on-chain backdrop, Santiment says periods of widespread losses have historically been favorable for buying or using a dollar-cost averaging approach. The platform stated that “Buying and dollar cost averaging when on-chain data shows a lot of pain among the average wallet, as it does now, is historically a sound strategy.”
That view does not amount to a call for an immediate rebound. The source material also notes that lower valuations suggest overall market sentiment has cooled from earlier highs. Trading conditions look quieter. Prices are less stretched. Near-term downside may be limited, but that still falls short of any guarantee that a bounce is right around the corner.
Valuation bands are now a key reference for sell pressure
Santiment’s framework is straightforward: when many recent buyers are already at a loss, the urge to sell can weaken because those holders may wait for better levels before exiting. In overvalued conditions, the opposite tends to happen, with more room for profit-taking near local peaks. By that measure, the current positioning of BTC, ETH, and other major crypto assets is becoming an important reference point for traders watching how buy demand and sell pressure develop.