Bancor to the moon – Is there more to its 3000% social volume spike?
The social volume of an altcoin indicates the retail hype around it. A massive spike after an exponential run can help in identifying tops and a spike after an extended crash can be used to determine bottoms, especially when combined with other on-chain metrics or indicators.
For Bancor, the social volume spiked by 3,000% over the last 24 hours, indicating massive interest among investors at its press time price level – $2.3. Other on-chain metrics also revealed that BNT could be on the edge of a massive breakout.
From December 2021, the 30-day social volume average for BNT hovered mostly below 1. Alas, on 8 March, this volume spiked to 127, bringing the 30-day average to 6.63. This sudden spike could be a precursor to a massive surge in market value of Bancor.
Source: Santiment
Bancor’s price has dropped by roughly 80% in the last year from an all-time high of $9.369. While bearish as it may sound, this price action is the perfect time to accumulate according to two on-chain indicators.
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 purchased BNT tokens over the past year, a negative value is a sign that the holders are underwater.
A negative value below -10% indicates that short-term holders are at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone.”
Therefore, according to the 365-day MVRV indicator, it is now the best time to scoop some BNT tokens at a discount.
Source: Santiment
Lending credence to the bullish thesis in the face of adversity for Bancor token
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