Santiment: Heavy Crypto Losses Suggest Relief Rally Could Be Starting

Crypto analytics firm Santiment reports that recent market weakness has pushed several major cryptocurrencies into negative return territory, leaving many short-term investors holding losses.

To assess shifting sentiment more clearly, the firm points to its 30-day MVRV metric, which measures the average profit or loss of recent market entrants. The indicator shows that the latest downturn has left traders across leading assets broadly underwater.

As selling pressure intensified, average returns across key cryptocurrencies fell into negative territory, including:

1. Bitcoin: around -10%
2. Ethereum: around -12%
3. XRP: around -8%
4. Cardano: roughly -18%
5. Chainlink: about -9%

With most recent buyers now sitting on losses, Santiment notes that such conditions have historically coincided with market exhaustion phases, when selling pressure tends to weaken. Against this backdrop, the firm suggests a relief rally is highly likely and may already be taking shape.

Source: Santiment