Despite some wild price action this July, the crypto market is experiencing a resurgence in the last couple weeks, with many digital assets rebounding from the downturns of the beginning of the month. However, this journey has not been uniform.

Thus, while some assets, like Toncoin, Bitcoin and Ethereum, have enjoyed gains, others have faced more challenging conditions. Notably, XRP and Shiba Inu (SHIB) holders have endured a period of market pain, according to data from on-chain analytics platform Santiment.

A key metric in assessing market sentiment is the Market Value to Realized Value (MVRV) Z-Score. This indicator compares the current market value of coins to the price at which they were last moved, providing insights into investor profitability. A negative MVRV Z-Score, as is the case for XRP and SHIB, suggests that the average holder is currently underwater.

Why is it bullish?

While this might seem discouraging, historical trends offer a glimmer of hope. Often, assets with a low MVRV Z-Score have displayed a tendency to outperform during market recoveries. This phenomenon can be attributed to several factors, including oversold conditions, accumulated buying pressure and the potential for significant price appreciation.

Consequently, the current predicament of XRP and Shiba Inu holders could be viewed as a contrarian investment opportunity. As the broader crypto market continues to strengthen, these assets, with their depressed valuations, are definitely ones to watch.