Amid crypto market drawdown, several major crypto assets are displaying deeply negative 30-day average returns, historically associated with strong recovery setups. According to Santiment data, multiple large-cap assets have now entered “Extreme Buy Zones,” presenting potential high-value entry points for traders and long-term investors.
0-Day Average Returns (Active Wallets)
- Cardano (ADA): -19.7% → Extreme Buy Zone
- Chainlink (LINK): -16.8% → Extreme Buy Zone
- Ethereum (ETH): -15.4% → Extreme Buy Zone
- Bitcoin (BTC): -11.5% → Good Buy Zone
- XRP (XRP): -10.2% → Good Buy Zone
Such negative returns suggests that many of these coins are trading well below their recent cost basis, historically a strong signal of undervaluation.
Why These Buy Zones Matter
This metric is closely tied to MVRV (Market Value to Realized Value), one of the most reliable on-chain indicators for identifying discounted accumulation zones.
What the data suggests:
When MVRV drops into deeply negative territory, assets are often oversold relative to their average holder cost.
Historically, extreme negative returns have preceded sharp rebound phases, as selling pressure exhausts and long-term buyers step in. These conditions tend to create attractive risk-reward setups, especially during broader market fear or liquidation cycles.
What Traders Should Watch Next
As Bitcoin and XRP show early signs of stabilization, assets like ADA, ETH, and LINK may see faster recovery momentum if market sentiment improves. Traders looking to accumulate during weakness should monitor:
- MVRV shifts
- Rising active wallet activity
- Macro events impacting BTC dominance
