The social volume of an altcoin indicates the retail hype surrounding it. A huge spike after an exponential run can help identify highs and a spike after a prolonged crash can be used to determine bottoms, especially when combined with other on-chain metrics or indicators.
To go all-in or not?
For Bancor, social volume is up 3,000% in the last 24 hours, indicating huge investor interest in the press price level – $2.3. Other on-chain stats also revealed that BNT could be on the brink of a massive breakout.
As of December 2021, the 30-day average for BNT has largely fluctuated below 1. Unfortunately, this volume peaked to 127 on March 8, taking the 30-day average to 6.63. This sudden spike could foreshadow a massive surge in Bancor’s market value.
Bancor’s price has fallen about 80% in the past year from a record high of $9,369. Bearish as it may sound, this price action is the perfect time to accumulate according to two on-chain indicators.
What else is there to say?
The 365-day Market Value to Realized Value (MVRV) model has been in the negative region for nine months and is currently hovering around –57.51%. Since this indicator is used to assess the average profit/loss of investors who have purchased BNT tokens in the past year, a negative value is a sign that the holders are underwater.
A negative value of less than -10% indicates that short-term holders are at a loss and this is generally where long-term holders tend to accumulate. That is why a value of less than -10% is often referred to as an “opportunity zone”.
Therefore, according to the 365-day MVRV indicator, now is the best time to score some discounted BNT tokens.
Credibility to the bullish stance in the face of adversity for Bancor token is the offering on the stock market index. The amount of BNT held on exchanges serves as potential selling pressure, especially during a panic crash.
Therefore, the higher this number is, the more likely a panic selling crash is. Since January 24, the number of BNT held in centralized entities has dropped from 33.5 million to 12.4 million, showing that 21.1 million BNT tokens have left the exchanges. This has eased potential selling pressure, suggesting that these investors are positive about Bancor’s price development for the foreseeable future.