A recent report by on-chain analytics firm Santiment indicates that Shiba Inu (SHIB), Cardano (ADA), and Dogecoin (DOGE) have higher short-term rally potential compared to Bitcoin (BTC), Ethereum (ETH), and XRP.
The analysis, based on the 30-day Market Value to Realized Value (MVRV) metrics, suggests a favorable outlook for these altcoins.
Bullish Forecast for Shiba Inu, Cardano, and Dogecoin
Santiment’s latest report highlights that Shiba Inu, Cardano, and Dogecoin are positioned to outperform major cryptocurrencies like Bitcoin, Ethereum, and XRP in the short term. The 30-day MVRV, a key metric comparing the market value to the realized value of a cryptocurrency, indicates the likelihood of a price bounce. A lower MVRV ratio suggests a higher probability of an imminent rally.
Shiba Inu (SHIB)
According to Santiment, Shiba Inu shows the most promising outlook with a 30-day MVRV of -19.1%, the lowest among the analyzed large-cap cryptocurrencies. This suggests significant bullish potential for SHIB. The recent surge in the Shiba Inu burn rate and its acceptance as a funding option for Visa cards on Crypto.com further bolster market sentiment towards the meme coin.
Cardano (ADA) and Dogecoin (DOGE)
Cardano and Dogecoin also exhibit strong bullish signals with 30-day MVRV values of -12.6% and -16.7%, respectively. Dogecoin’s community-driven momentum and Cardano’s ongoing technological developments contribute to their favorable outlooks.
Market Dynamics Favor Altcoin Rally
Santiment’s recent post on X emphasizes: “The lower a cryptocurrency’s 30-day MVRV is, the higher the likelihood we see a short-term bounce.” The relatively mild bullish outlook for Bitcoin at -4.0%, Ethereum at -4.3%, and XRP at -3.5% contrasts with the more pronounced bullish signals for SHIB, ADA, and DOGE.
Potential for Gains
Current market conditions favor a rally for altcoins like Shiba Inu, Cardano, and Dogecoin. These altcoins, with their lower MVRV ratios, are positioned to leverage their undervaluation for potential gains. The MVRV ratio serves as a critical indicator of whether an asset is overvalued or undervalued relative to its realized value. When significantly negative, it suggests undervaluation, providing a buying opportunity that could lead to a price increase.
Current Market Performance
As of this writing, Shiba Inu’s price is up around 2%, Dogecoin has jumped 1.85% in the last 24 hours, and Cardano has soared 2.29% to $0.3891. In contrast, Bitcoin’s price has fallen nearly 1% to $65,100, struggling to regain momentum. Ethereum has followed the broader market recovery, jumping 3% to $3,529, while XRP has dropped 2.54% to $0.4902.
Conclusion
While Bitcoin, Ethereum, and XRP remain industry leaders, their relatively higher MVRV ratios suggest less aggressive short-term rally potential compared to altcoins like Shiba Inu, Cardano, and Dogecoin. These altcoins have shown resilience and are now positioned for potential gains based on their lower MVRV metrics and recent market trends.
