- Santiment data shows that the average altcoin wallet has witnessed massive profits.
- Santiment cautioned investors regarding “overbought” signals.
- Opening a new position in an altcoin is highly risky, Santiment said.
Santiment, a blockchain analytics firm, has pointed out in a recent X post that altcoin holders are sitting on massive unrealized gains after weeks of explosive price action to the upside for many cryptos.
Apart from a few sluggish altcoins, the “vast majority” of crypto projects have provided significant gains to holders, stated Santiment in a post on social media platform X (previously known as Twitter) on February 20.
The average wallet over a medium to long-term time period has seen “understandably high profits” from altcoins since the market turned green starting in mid-October 2023. However, the blockchain analytics platform also cautioned investors that its signals are now showing “overbought” levels.
Santiment also suggested that based on the market value to realized value (MVRV) metric, opening new positions in altcoins that are in the midst of a 4…
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