- Hayes has decided to add more DOGE to his portfolio after recent discounts.
Santiment data suggested that DOGE’s current level was grossly undervalued.
As a researcher with a background in crypto markets and experience following the movements of key players like Arthur Hayes, I find the current market conditions quite intriguing. The recent fire sales have led to significant discounts on various cryptocurrencies, including Dogecoin (DOGE), which has caught the attention of experienced investors like Hayes.
As a market analyst, I’ve observed some significant sell-offs in the cryptocurrency sector over the past few days, resulting in steep price declines for most coins. Amidst this market turmoil, Arthur Hayes, the founder of BitMEX and Chief Investment Officer at crypto fund Maelstrom, has seized the opportunity to purchase Dogecoin (DOGE) at its recent bargain prices.
I really enjoy the erratic, sideways-to-down movements in the price of certain cryptocurrencies like PENDLE and DOGE. I’m taking advantage of this trend by purchasing more of them.
As a researcher studying the cryptocurrency market, I’ve noticed that Hayes, in the past, has mentioned his preference for acquiring more digital assets during market volatility, specifically during the summer months when price movements can be particularly choppy. However, he hasn’t shared any further details about his intentions regarding DOGE.
How is DOGE faring
According to CoinMarketCap’s latest figures, DOGE, the most capitalized meme coin, experienced a 10% decrease in value over the past week. However, there was a minor improvement observed in its daily price performance.
As of press time, it was slightly up +2% in the past 24 hours and traded at $0.125.
Previously this week, Santiment identified that the latest market decline resulted in reduced sentiment towards certain cryptocurrencies, such as DOGE and SHIB [Shiba Inu], potentially making them attractive investment opportunities.
As a market analyst, I would advise patient investors who have held back from purchasing large-cap altcoins, anticipating a mass exit from the crowd, to consider seizing this potential buying opportunity. Prices may currently be experiencing fear of missing out (FOMO) at their 2024 lows.
An intriguing observation from Santiment’s latest data indicates that the value of DOGE may have been underestimated according to historical trends, potentially leading to a price increase.
In simpler terms, when a cryptocurrency’s MVRV (30-day Market Value to Realized Value Ratio) is relatively low, such as for Bitcoin at -4.0%, Ethereum at -4.3%, and XRP at -3.5%, it indicates a mildly bullish outlook. However, when the ratio is significantly low like Dogecoin’s -16.7%, it suggests a highly bullish situation, potentially leading to a short-term price increase.
As a crypto investor, I closely monitor the Market Value to Realized Value (MVRV) ratio to assess whether an asset is potentially undervalued or overvalued in the market. Recently, the MVRV reading for DOGE hit a deep negative of -16.7% within the past 30 days – the lowest it has been during this period. This strong indication suggested that DOGE was significantly undervalued and offered an attractive discount for potential buyers.
So, Santiment data supported Arthur Hayes’ thesis of going long on the dog-theme memecoin.
According to a recent analysis by AMBCrypto, certain large investors, referred to as mid-sized whales, have been purchasing the memecoin. This buying activity could potentially signal a bullish turnaround for the coin’s price trend.
However, a decisive bullish reversal could only happen if Bitcoin [BTC] reverses recent losses.
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2024-06-19 19:03