Ethereum Undervalued, Bitcoin & XRP Remain Neutral Amid Recent Bullish Reversal

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Ethereum Undervalued, Bitcoin & XRP Remain Neutral Amid Recent Bullish Reversal

The post Ethereum Undervalued, Bitcoin & XRP Remain Neutral Amid Recent Bullish Reversal appeared first on Coinpedia Fintech News

Based on the 30-day Market Value to Realized Value (MVRV) Ratio, Ethereum (ETH) is mildly undervalued at -5.5%. Bitcoin (BTC), XRP (XRP), and Chainlink (LINK) remain neutral at -1.4%, -0.1%, and +3.3%, respectively. By contrast, Cardano (ADA) is mildly overvalued, with an MVRV ratio of +6.8%.

Source: Santiment

Bitcoin and the wider crypto market showcase a bullish trend reversal

The past day has seen an upward trend reversal in the broader cryptocurrency ecosystem, despite recent bearish momentum and sentiment.

Data shows that the average Moving Average Convergence Divergence (MACD) indicator has slightly surpassed its 9-day average, indicating a weak bullish momentum reversal.

BTC was up 7.78% in the past day to trade at $69,050 as ETH gained 13.31% to reclaim its $2,000 psychological level. Meanwhile, XRP and LINK gained +9.37% and 16.07%, respectively. Uniquely, Cardano has experienced a striking 20.07% upsurge to trade at $0.3115.

Source: CoinMarketCap

Events leading up to the recent crypto rally

Tech company Nvidia recently reported record-breaking earnings driven by demand in artificial intelligence (AI). Due to the strong correlation (98%) of crypto with the S&P 500, the news fueled renewed risk appetite in investors of both stocks and crypto.

Capital rotation from BTC to altcoins has contributed to their recent rallies as investors seek higher returns from riskier assets. Bitcoin dominance is now at 58-60%, while the Altcoin Season Index reads 34/100, indicating a mixed market for Bitcoin and Altcoins.

This week, Bitcoin ETFs saw $257.7M in net inflows, effectively ending a five-week outflow streak.

Near-term market outlook

At press time, the overall crypto market cap totaled $2.38 trillion, having gained 7.50% in the last 24hours.

Should the current rally hold, the crypto market could test the $2.59T (50% Fibonacci) level. Falling below $2.35T (78.6% Fib) would indicate a loss in momentum, validating a weak bullish theory.