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Building real-time price models with MVRV ratio | Santiment Weekly Pro Report

@Ibis
1 min read
21.03.2021
BTC


Pictured: Bitcoin’s predictive model using the 30-day MVRV ratio

When it comes to valuation methods and coin due diligence, the MVRV (Market Value to Realized Value) ratio has become an increasingly popular choice among on-chain analysts.

While it’s not without its drawbacks, the metric provides a simple way to gauge whether a certain coin is currently over- or undervalued, and the likelihood of an upcoming trend reversal.


But can the MVRV ratio actually be used in real time to spot potential ‘danger’ and ‘opportunity’ zones - and adjust your portfolio accordingly?


To put this to the test, this week we took a deep look at the MVRV ratios for 1000+ coins, and attempted to build a real-time ‘buy’ and ‘sell’ model based on the metric.


But first, a proper introduction is needed:


What is the MVRV ratio?


Put simply, the

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