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The cryptocurrency market experienced selling pressure this week, with several cryptocurrencies trading lower.

The Bitcoin price reached its lowest since February, with several cryptocurrencies mirroring the BTC price trend. High interest rates and dwindling demand for Bitcoin exchange-traded funds have also pushed prices down. The decrease was further aided by a lack of liquidity, as many U.S. market participants were off over the July 4 holiday.

Amid the current market uncertainty, a metric that has recently drawn attention is the 30-day market value to realized value (MVRV) ratio.

According to on-chain analytics firm Santiment, this metric might serve as an indicator for assessing the risk and timing of investments, especially in the short term.

The MVRV ratio is a comparison of the market capitalization (market cap) of a cryptocurrency against its realized cap. The 30-day MVRV specifically measures the average profit or loss of investors who purchased the asset within the past month.

A lower 30-day MVRV suggests that the crypto asset is undervalued and may indicate a dip buying opportunity with less risk.

What's next for DOGE, XRP and ADA?

Dogecoin, XRP and ADA are significantly down from their 2024 highs with the recent selling in the market exacerbating losses. However, Santiment's recent analysis utilizing the 30-day MVRV ratio offers a glimmer of hope.

Based on 30-day MVRV, Santiment lists major cryptocurrencies with the lowest to highest risk of dip buy potential presently. The percentages provided for Dogecoin, XRP and ADA are as follows: DOGE: -19.7%, XRP: -10.1%, ADA: -9.9%.

These negative percentages imply that these coins are currently undervalued according to the MVRV metric, suggesting that there is comparatively lesser risk involved in opening or adding to positions in the short term. These figures could also be signaling a potential price comeback for these cryptocurrencies.

While the MVRV ratio remains a useful tool, it might be important to consider it alongside other market factors and sentiment.