Cardano and Three Additional Altcoins Flashing Oversold Signals, According to Crypto Analytics Firm
A leading crypto analytics firm says that the most recent crypto market downturn has put four altcoins in an ideal price range for investors.
According to Santiment, Cardano (ADA), Polygon (MATIC), Crypto.com Coin (CRO) and Chainlink (LINK) are all in the “strong and oversold” territory.
The market intelligence firm says,
“As assets have mostly ranged on Tuesday, altcoins like ADA, MATIC, CRO and LINK look particularly oversold according to our screener.
We account for high market caps, transaction volume, and active addresses, combined with low returns on networks.”
Santiment follows up by explaining which criteria help determine if an asset’s price is ready to turn around.
“As stated above, high market caps, transaction volume, and active addresses, combined with low returns on networks make up a particularly good way of gauging a token’s turn-around point.
Assets on this list meet the criteria for historically increased likelihood of bottoms.”
All four crypto assets Santiment mentions are rallying after Tuesday’s market-wide dip.
Smart contract platform Cardano is up nearly 6% to $0.94 while layer-2 scaling solution Polygon is surging, up 8.89% to $1.56.
Singapore-based cryptocurrency exchange platform Crypto.com Coin is also up 6.1% to $0.41 and decentralized oracle network Chainlink is in the green, trading for $14.44, a 5% increase.
The analytics firm also notes that stablecoin use is dwindling, which it believes could be a sign of upcoming capitulation.
“During this 3+ month crypto slide, we have seen stablecoins utilized less and less often.
Unlike traditional cryptocurrencies, the declining use of USDT [Tether], DAI [DAI], and others is a sign that the crowd has had enough pain.”
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