As crypto markets exhibit significant upward movement on a bullish Friday, traders should consider the current positions of various assets regarding their average trading returns. Historical data suggests that purchasing assets where traders have experienced substantial losses may yield higher returns, while assets with recent gains may present higher risks.
According to the report by Santiment, For those who believe the market is on the verge of a surge, it is crucial to know the assets where average traders are profiting. While potentially more profitable, these coins, due to their recent gains, also carry higher risks. Notable among them are Toncoin, Bitcoin, Ethereum, and Dogecoin.
Lower-Risk Assets with Recent Losses
Conversely, where average traders are losing, assets could present lower-risk opportunities. Investing in these coins might be advantageous as they have historically provided higher returns following periods of substantial trader losses. Uniswap, Shiba Inu, Polygon, Chainlink, Cardano, and XRP fall into this category.
Given the historical trends, traders aiming for high returns should consider diversifying their portfolios by including assets where traders have recently experienced significant losses. With lower current MVRV Z-Scores, these coins might be positioned for a rebound, providing better potential for profit as the market turns bullish.
As always, thorough research and consideration of the inherent risks before making investment decisions are essential. The dynamic nature of the crypto market requires constant vigilance and adaptability to optimize trading strategies effectively.
