SOL, UNI, AAVE and MANA are ready to buy, says Santiment analyst

  • A Santiment analyst said these tokens are in a good zone for investors looking to buy into traders' pain.
  • Optimism regarding Solana is growing as development activity continues to ramp up.

In a recent YouTube video , Brian Quinlivan, head of marketing at crypto analytics firm Santiment, highlighted a few altcoin ecosystems whose metrics show they are set for a surge.

The metric in question is Market Value to Realized Value (MVRV). MVRV shows the average circulating coin loss or gain of a crypto token at the current price. It helps show willing buyers when the time is right.

Uniswap (UNI)

Although the number of daily active addresses in the ecosystem fell sharply (from 3,259 on Oct. 29 to 836 active last), Quinlivan reviewed the asset's 30-day MVRV and stated that it is currently in a good buy zone.

"We're usually looking for just under 15% to be a good zone of opportunity, and we definitely jumped well under 15% there… we're still well in the zone of opportunity for Uniswap," he said.

Aave (AAVE)

The analyst also noted that AAVE is in excellent historical time to buy as its MVRV is in the 15% opportunity zone. He added that if this rally continues, traders' pain could linger for much longer and traders should take advantage of these doubts.

Quinlivan also noted that AAVE indicates more optimism than Uniswap, adding that whales (1000 to 100,000 tokens) have shown a bounce since around Jan. 22. He argues that their accumulation bodes well for key stakeholders.

Decentraland (MANA)

One of the best-performing altcoins among the top tokens, Quinlivan watched MANA surge 40% in the nine days leading up to February 1st. Since then, however, MANA has outgrown the 15% buy zone.

He also observed curiously that Binance and FTX stood out as traders short on the two exchanges Decentraland. He explained that this is a good sign as the spikes coming from these massive shorts will eventually need to be liquidated.

“It's quite cyclical and right now this is one of the most bullish metrics for MANA because there's so much shorting that… these huge spikes are bound to get liquidated at some point because people who go short at that level usually do. It's not going so well."

Solana (SOL)

On the Solana smart contract platform, Quinlivan noted that its development activity has increased over the past six months. The increasing number of daily GitHub submissions shows that the Solana team believes in improving the chain for long-term sustainability.

“Daily GitHub submissions are currently a little over 500 per day, up from 190 a year ago. So that's a very good sign," he said.

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