The analysis firm points to cryptocurrencies with great potential at the end of January
CriptoFácil – Analytics platform Santiment, as well as some other cryptocurrencies, offers traders great investment opportunities at the end of January.
Among them, the analysis firm highlights (DOGE) and (SHIB), memecoins that according to the company are undervalued and present less risk to investors. The valuation was based on a market value to realized value (MVRV) score of Z.
The MVRV Z score is used to determine whether an asset is undervalued or overvalued. When the MVRV Z score is in the negative area, it means that the asset is undervalued.
“Dogecoin is trading at $0.86, Shiba Inu at $0.000012, MVRV Z-Score of Shiba Inu is -1.88 while Dogecoin is -0.162. Therefore, this may indicate lower risk of a sharp decline,” he said.
In addition to the two memcoins, Santiment has also identified other undervalued crypto assets such as, (), layer 2 solution (MATIC), decentralized exchange (UNI), and (LINK).
bitcoin
On the other hand, Santiment claims that (BNB) has a MVRV Z score of 0.87, which indicates that it is overestimated.
Regarding Bitcoin, Santiment notes that positive year-to-date BTC returns have sent levels of public optimism in the markets to a six-month high.
According to the platform, traders are taking the signs of Bitcoin life as a sign that a larger breakout could be on the horizon soon.
“The recovery above $21,000 in January led the crowd to show the most optimism in the markets since last July. He emphasized that it is necessary to wait for a breakout of the $24,000 and $25,000 resistance levels.
However, the secondary analysis highlights that it will only be possible to consider an upward move if BTC breaks $25,000.
by CryptoFacil