This is not the first time this has happened. As the top assets consolidated, the market turned to the more profitable altcoins. For example, Revain (REV) grew 55% in just one day. In contrast, Bitcoin is down almost 1% and ETH is up 1.3%.
REV is currently trading at $ 0.01056 and is trying to rebound after falling more than 75% from its high of $ 0.06229 in May 2021. Notably, efforts to increase it later saw several losses during the course of December.
However, on December 13th, the REV was up about 112%. The price began to fall the next day and reversed the upward trend. Next, on December 20th, the price rose 45% but didn’t last long. Likewise, on January 1st, net worth rose more than 50%.
To repent in the long run?
One day bullish bars that are moving in the right direction are often enjoyed by market participants. However, the recent 18% increase in REV is different. What altcoins need is a sustained rally before the market can really be satisfied with a REV return.
The altcoin has bottomed out since September and the price has risen within a day. At the end of November, the price saw several major sales and has not been comfortable since then.
2022 could look different, however, as the mint’s MVRV has some interesting tidbits on offer. The 7- and 90-day MVRVs in particular have seen a reversal, both of which could do well if prices hold. While at press time it is not overstated for MVRV to still break into negative territory, a reversal into positive territory is what needs for the future.
On the flip side, the 365-day MVRV is still in a sustained downtrend after hitting a multi-month high on September 4th. If the long-term MVRV breaks out of the downtrend, the reversal could be further confirmed.
If the Altcoin Sharpe Ratio signaled a week ago that it was a relatively unsafe investment, it is now rebounding. In fact, rates are back in positive territory, up more than 300% in the past week, making the asset look relatively safer.
The source: Messari
With the upward momentum, the number of active addresses increased as the trading volume increased. However, given the still slow network growth, the recent rally cannot be called a real recovery.
The sustained uptrend in active addresses (as seen in August) coupled with a reversal in network growth could confirm the bullish sentiment for the price. However, on January 1, it turned nearly 8.24 million years old, meaning a number of longtime owners were selling REV to take profits at that price.
Hence, it seems that the recovery of long-term indicators combined with sustainable activities will help regain strength. Until then, the possibility of further price movement south cannot be ignored.
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