The cryptocurrency market has been in a bear market for several months now, with many assets down more than 50% from their all-time highs. However, according to on-chain data, the market may be nearing a bottom, with many assets looking underbought on the monthly timeframe.
Underbought Market And Trader’s Return
One way to measure whether or not a market is underbought is to look at trader returns. Trader returns are the average return that traders have made on their investments over a certain period of time. Negative trader returns indicate that traders are losing money on their investments, which is often a sign of an oversold market.
According to data from Glassnode, trader returns for many crypto assets are currently negative on the monthly timeframe. This suggests that the market is oversold and could be poised for a correction.
Some of the assets with the most negative trader returns on the monthly timeframe include:
- $GALA: Gala is a gaming platform that allows users to create and play their own games. It is powered by the GALA token.
- $APE: ApeCoin is a cryptocurrency that was created by the Bored Ape Yacht Club NFT collection. It is used to purchase goods and services within the ApeCoin ecosystem.
- $MAGIC: MAGIC is the utility token that connects gaming communities in the Treasure Metaverse: a decentralized NFT ecosystem which sits on Arbitrum, one of Ethereum’s Layer 2 scaling solutions.
- $SRM: Serum is a decentralized exchange (DEX) that is built on the Solana blockchain. It is powered by the SRM token.
These assets are all down significantly from their all-time highs, and they have all experienced negative trader returns on the monthly timeframe. This suggests that they may be oversold and could be poised for a correction.
Overall, the fact that crypto markets remain underbought on the monthly timeframe is a bullish sign. It suggests that the market is oversold and could be poised for a correction. Investors who are interested in buying cryptocurrencies may want to consider waiting for a correction in the market before making any purchases.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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