Unlocking the Potential of MVRV - ETH
I will be analyzing the Market Value to Realized Value (MVRV) ratio of Ethereum over different timeframes using the formula "(MVRV30 - MVRV7) + (MVRV90 - MVRV30) + (MVRV180 - MVRV90) + (MVRV365 - MVRV180)". This formula calculates the difference between each MVRV ratio and the next one, with a positive result indicating overvaluation and a negative result indicating undervaluation.
Over the past five years, this line has rarely crossed below the value of 1, and each time it has, it has been a good opportunity to buy Ethereum. Additionally, when the MVRV is near the value of 1, it may indicate potential short-term buying opportunities.
Based on this analysis, it appears that we are currently not near good buying opportunities and it may be wise to hold or consider selling. Additionally, using the formula (MVRV90-MVRV30) to look for opportunities to buy or exit positions, it seems that we are in a neutral state, suggesting no more buying, but rather considering selling.
It's important to note that even though the current market conditions may not indicate the best time to buy, it doesn't mean that the top of the market couldn't be much higher.
Looks like many missed the boat on buying at lower prices...... Sound familiar?
Thanks for reading!
If you enjoyed this insight please leave a like, join discussion in the comments and share it with your friends!
Never miss a post from sanr_king!
Get 'early bird' alerts for new insights from this author