Understanding the 30-day MVRV ratio is essential for assessing risk when you consider opening a new trade or increasing your current holdings. In general, a lower value indicates a safer entry point for investors.
When this metric shows a negative percentage, it signals that the average trader you are competing against is currently facing a loss. This situation presents a chance to buy in while profit levels are beneath the standard zero-sum game threshold. Essentially, the deeper the value drops into negative territory, the safer the purchase opportunity becomes.
Conversely, a positive percentage implies that the average market participant is in profit. Entering the market under these conditions carries greater risk, as profits are exceeding the normal zero-sum game baseline. As the positive percentage climbs, the danger associated with buying that asset increases significantly.
For your reference, here is the current status of several prominent assets:
ChainLink: -9.5% (Undervalued)
Cardano: -7.9% (Undervalued)
Ethereum: -7.6% (Undervalued)
XRP: -5.7% (Undervalued)
Bitcoin: -3.7% (Mildly Undervalued)
You can monitor this chart at your convenience to identify the optimal moments to buy low or sell high.