Analysts have identified tokens that may fall in price

Experienced investors closely monitor the market dynamics of cryptocurrency assets to avoid missing a trend change. An online indicator that helps assess market sentiment has revealed an interesting trend in five popular altcoins.

The indicators indicate that investors are ready to take profits after a large-scale growth. Cryptocurrencies ENS, ARB, MNT, MKR, and ETH demonstrate high MVRV (Market Value to Realized Value) values, which indicates a high probability of profit-taking and price correction.

The MVRV ratio, which compares the market capitalization of an asset to its realized capitalization, gives an idea of whether the price of an altcoin corresponds to its «fair value.»

The market capitalization exceeds the realized capitalization when investors have accumulated so-called paper profits — they are in the black on their trades but have not yet recorded a profit. Such a scenario usually indicates an upcoming sell-off. If the market capitalization is lower than the realized value, it is likely that the asset is undervalued or not in demand.

«The current scenario, characterized by high MVRV values, creates favorable conditions for the sale of these altcoins. However, an investment decision should always be balanced. Cryptocurrency markets are known for their volatility, and an asset that seems to be overbought can grow for a very long time,» the analysts emphasized.

Ethereum Name Service, Arbitrum, Mantle, Maker, and Ethereum have unique characteristics, and events related to them affect their value. Investors should take them into account along with the MVRV ratio to form a holistic view of the market.