|

Altcoins facing a risk of correction after massive rally: Cardano, Chiliz, Fetch.AI, Lido, The Graph

  • Altcoins have observed a surge in their prices in the past four months, several key tokens are facing a risk of a correction. 
  • On-chain metric MVRV reveals a higher risk than average in buying Cardano, Chiliz, Ethereum, Fetch.AI, Lido, among other assets. 
  • AI and data coins could correct in the coming weeks as the hype surrounding the narrative declines. 

Altcoin prices have climbed in the past four months, offering massive gains to holders beginning October 2023. Except for a few lagging altcoins, a vast majority of assets generated profits for average wallet holders in the mid to long term timescale. 

Crypto intelligence tracker Santiment’s predictive model uses Market Value to Realized Value (MVRV) metric to determine whether an altcoin is in an opportunity or danger zone. The model identified several assets in the danger zone, most notable ones including Cardano, Ethereum, Lido and Fetch.AI, among others. 

Also read: AIT, GRT, OCEAN: Crypto data coins see massive rally alongside Bitcoin and AI tokens

Altcoins in the danger zone: ADA, CHZ, ETH, ENS, FET, HNT, LDO

Santiment’s MVRV model places several altcoins in the danger zone. Santiment’s analysts believe that these assets are at a high risk of “correcting.” After four months of rallying higher, several assets have reached at a point where they typically correct, increasing the risk associated with opening a trade or a long position in these cryptocurrencies. 

The notable cryptocurrencies that are currently in the MVRV danger zone include, Cardano (ADA), Chiliz (CHZ), Ethereum (ETH), Ethereum Name Service (ENS), Fetch.AI (FET), Holo (HNT), Lido (LDO), Nexo (NEXO), Ocean Protocol (OCEAN), Singularity NET (AGIX) and The Graph (GRT).

Altcoins

MVRV model by Santiment. Source: Santiment 

The altcoins identified using the MVRV model are fairly “overbought,” while this does not mean that they are set to witness a massive correction, it means that there is a higher than average risk of purchasing these assets after a four-month rally in their prices. 

AI hype could die down soon

The hype generated in Artificial Intelligence (AI) tokens with the launch of text to video generator tool Sora fueled gains in several assets like AGIX, FET, GRT. The hype could die down soon, if the narrative fails to gain traction, these cryptocurrencies could witness a correction. The launch of further tools from OpenAI or Sam Altman’s projects could see the “sell the news” effect at play as market participants anticipate a spike in AI token prices. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure 

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest.

Pi Network extends decline as steady mainnet migration adds pressure

PI edges lower by over 3% at press time on Monday, marking a third consecutive day of losses. The declining trend in PI aligns with the steady mainnet migration of PI tokens, which may fuel selling pressure. The technical outlook for PI remains bearish, with bearish momentum persisting. 

Bitcoin slips below $70,000 as ETF outflows, realized losses fuel bearish outlook

Bitcoin price trades in red below $70,000 on Monday after correcting nearly 9% in the previous week. US-listed spot ETFs recorded a $318 million weekly outflow, marking the third consecutive week of withdrawals.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: The worst may be behind us

Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.