Santiment recently shared a rather interesting perspective on the 30-day MVRV index, which short-term traders should pay attention to as it reflects the average profit and loss of those who have bought in the last 30 days.
Simply put, the meaning of the MVRV index is as follows:
The lower the MVRV, the lower the risk of entering a trade, as most recent buyers are currently at a loss.
Negative MVRV means that the average trader is losing money → there is room for the price to 'catch up'.
Positive MVRV means the average trader is in profit → profit-taking pressure may easily appear, prices may be held back or adjusted
Santiment also indicates the current average profit status of some major coins:
BTC: +2.4% → neutral state
BTC is currently neither too cheap nor too hot, suitable for observation rather than all-in.ETH: +7.2% → slightly overvalued
ETH is showing a fairly clear average profit, so in the short term, it is easy to encounter profit-taking pressure if there is no new catalyst.XRP: -6.1% → slightly undervalued
The average trader is at a loss, this is usually the area where prices can have a technical rebound if there is supportive news.LINK: -0.3% → neutral
Almost breaking even, not giving a very clear signal.ADA: -4.4% → neutral leaning undervalued
Not too cheap but also not in the FOMO zone.
In summary, according to the 30-day MVRV perspective, $XRP is the name with a better short-term risk/reward advantage while $ETH needs to be more cautious as many people have already made profits.
