TLDR:
- Bitcoin’s MVRV Z-Score weakens with each all-time high, falling below 2024 levels despite elevated prices.
- Ethereum’s MVRV Z-Score touched negative territory briefly, with that level acting as strong support.
- XRP’s metric shows consistent decline, reflecting deteriorating on-chain structure and waning conviction.
- Cardano’s negative MVRV Z-Score suggests accumulation phase as price trades below on-chain fair value.
MVRV Z-Score metrics are revealing structural weakness across the cryptocurrency market despite sustained elevated prices.
Recent on-chain analysis indicates Bitcoin’s momentum has weakened with successive highs. Meanwhile, Ethereum demonstrates localized resilience and Cardano enters potential accumulation territory.
XRP continues to show deteriorating holder conviction. These diverging patterns suggest varying investor behaviors across different digital assets.
Bitcoin and Ethereum Display Contrasting On-Chain Dynamics
Bitcoin’s MVRV Z-Score has declined progressively with each new all-time high recorded during the current cycle. The metric currently sits below levels observed throughout 2024.
This pattern suggests diminishing on-chain strength despite price appreciation continuing. Market participants appear less convinced about valuations at these elevated levels compared to earlier peaks.
Crypto analyst Alphractal shared these observations on social media platform X. The analysis points to weakening conviction among long-term Bitcoin holders.
Traditional bull market indicators are not confirming the price action. This divergence between price and on-chain metrics warrants attention from market observers.
Ethereum presents a different picture with its MVRV Z-Score briefly touching negative territory for one trading day. That level subsequently acted as support for the asset.
Long-term investors appear to be defending current price levels through accumulation. This behavior indicates stronger holder conviction compared to Bitcoin’s weakening signals.
XRP Deteriorates While Cardano Enters Accumulation Phase
XRP’s MVRV Z-Score continues declining consistently across recent weeks and months. The metric reflects gradual deterioration in the asset’s on-chain structure.
Holder conviction appears to be waning as the score trends lower. This pattern typically precedes further price weakness or extended consolidation periods.
The sustained decline in XRP’s metric contrasts sharply with other major cryptocurrencies. Market participants holding the asset show less commitment to current valuations.
This erosion of on-chain strength could influence future price action. Investors tracking these metrics may adjust positioning accordingly.
Cardano presents the most bearish technical reading with its MVRV Z-Score already in negative territory. However, negative readings historically correlate with accumulation phases rather than distribution. The current price trades below its average on-chain fair value.
Smart money typically accumulates assets when they trade below intrinsic value metrics. This positioning could favor patient long-term investors willing to accumulate at depressed levels.
The diverging on-chain signals across these four major cryptocurrencies reflect varying market dynamics. Price action alone may not capture the complete picture of market health. On-chain metrics provide additional context for assessing sustainable versus fragile rallies.
The post MVRV Z-Score Analysis Reveals Structural Weakness Across Bitcoin, Ethereum, XRP, and Cardano appeared first on Blockonomi.
Source: https://blockonomi.com/mvrv-z-score-analysis-reveals-structural-weakness-across-bitcoin-ethereum-xrp-and-cardano/
