Shiba Inu Surprise & Uniswap Slump: Can On-Chain Data Predict the Next Crypto Breakout?

The crypto market might be shifting, with Uniswap and Shiba Inu showing signs of undervaluation, and Bitcoin, Ethereum, and Toncoin potentially overvalued according to on-chain data.

According to Santiment, a crypto intelligence firm, on-chain metrics reveal that Uniswap (UNI) and Shiba Inu (SHIB) are currently undervalued, while Bitcoin (BTC), Ethereum (ETH), and Toncoin (TON) are overvalued. This analysis is based on the MVRV Z-Score, a metric that considers market value compared to realized value to identify potential tops and bottoms in asset prices.

The data comes amidst a recent price decline for UNI and SHIB. Both tokens have dropped by around 9% and 4% respectively in the past week, currently trading at $8.985 and $0.00001714. Analysts suggest this price weakness, coupled with the undervaluation signal from the MVRV Z-Score, could indicate a potential recovery for these assets.

On the other hand, Bitcoin, Ethereum, and Toncoin are currently flagged as overvalued. This suggests that market participants might have priced these assets above their inherent value, potentially leading to a price correction in the near future. The Santiment chart positions these three tokens in “overbought territory,” while UNI and SHIB sit in the “undervalued” zone.

This information could be valuable for investors seeking to navigate the ever-changing crypto market. Sidelined buyers might consider entering positions in UNI and SHIB while their prices are potentially low. Conversely, investors holding overvalued assets like Bitcoin (BTC), Ethereum (ETH), and Toncoin (TON) may want to be cautious of a possible price dip.

It’s important to remember that on-chain analysis is just one factor to consider when making investment decisions. Market sentiment and external events can also significantly impact crypto prices. However, this data provides valuable insights into the current market positioning of these popular tokens and could be a helpful tool for investors looking to make informed choices.