3 Top Cryptocurrencies That Are Overbought: Is It Sustainable?

The MVRV Z-Score, a metric for identifying overvalued and undervalued assets based on average trader returns, reveals significant trends in the cryptocurrency market. Currently, top cryptocurrencies fall into clear categories. 

As highlighted by Santiment, a top analytic firm, Toncoin, Bitcoin, and Ethereum are considered overbought, while Uniswap and Shiba Inu are seen as underbought. This categorization provides investors with crucial insights into market conditions and potential investment strategies.

As per the data fetched from CoinMarketCap during writing, TON’s price stood at $7.47, with a 24-hour trading volume of $197,906,021. Despite a slight drop of 1.92% over 24 hours, Toncoin is still perceived as overbought. This status suggests that many traders have profited significantly, potentially leading to its inflated value. 

Similarly, Bitcoin’s price stood at $60,649.85, with a massive 24-hour trading volume of $23,907,540,526. Although Bitcoin has decreased by 1.38% in one day, it remains overbought. This indicates sustained interest and high returns for investors, contributing to its elevated market position.

Ethereum, another top-tier cryptocurrency, exchanged hands at $3,380.39 with a 24-hour trading volume of $11,999,807,795. Despite a 1.87% decline over 24 hours, Ethereum is still considered overbought. This suggests that the asset has been performing well, offering substantial returns to traders. Consequently, the current prices of these cryptocurrencies might not be the best entry points for new investors seeking undervalued opportunities.

Conversely, Uniswap was priced at $8.96, with a 24-hour trading volume of $168,663,347. It experienced a significant drop of 6.05% in the past 24 hours. The MVRV Z-Score indicates that Uniswap is underbought, highlighting it as a potential opportunity for investors looking for undervalued assets. 

Similarly, Shiba Inu, priced at $0.000017 with a 24-hour trading volume of $252,297,378, has dropped by 1.71% in the last 24 hours. Its underbought status suggests it might be a good prospect for investors seeking assets with growth potential.