This altcoin has managed to rally close to 1,100% from last month’s local bottom. The aforementioned increase in value came at a time when Bitcoin and altcoins were mostly falling. But now, leading analytics firm Santiment is warning investors about this altcoin.
This altcoin did 11x in 2022
There is an Ethereum-based altcoin project that set out with the goal of tokenizing risk. This project cryptocoin.com as BarnBridge (BOND), which we reviewed earlier. BOND hit the bottom of 2022 at $2.18 last month. After that, an uncommon development occurred in the crypto market. The coin has gained over 1,100% in just one month. Accordingly, a BOND is currently trading at $25. After this remarkable rise, many analysts and firms have tried to answer the question of what’s next for BOND. One of the most important among these was the leading analytics firm Santiment. Santiment analyzed the on-chain data on BOND and evaluated the next possibilities for the token. The firm revealed that the altcoin has seen significant growth in several on-chain data:
“On-chain efficiency increases with the rise in price. This is usually a good indicator. More activity has the potential to support the price’s uptrend. The number of new addresses interacting with BOND on a daily basis is also on the rise. Accordingly, new investors continue to enter BOND. However, there is no difference in BOND price. So these indicators only act as support for the altcoin.”
Santiment: Fix may come soon
In addition to the above, Santiment also studied the behavior of users holding between 100 and 100,000 BOND. The firm states that these investors are selling their altcoin holdings while the bull run continues. It is worth noting that BOND holders are reducing their portfolios in this uptrend. However, he adds that it is possible for the price to rise despite these sales. If this happens, investors who sell will likely regret it.
As we mentioned earlier, a lot of on-chain data supports the rise of the altcoin. But Santiment says the decline is more likely despite these data. According to the firm, BOND is now starting to show bearish signals. He explained the reason for this with whale operations. The data company pointed out that whale transactions have already reached record levels. It is possible that the whale trades reaching the top are the harbinger of a correction in price. In addition, Santiment says that BOND whales, which accumulated heavily at the bottom in June, are now starting to sell.
“BOND is overvalued right now”
Santiment did another analysis. This was the 30-day market cap and realized value metric. The metric shows the ratio between the current price and the average price of each acquired token. Accordingly, the metric is quite high right now. So BOND is currently on the market in an overvalued condition. Therefore, the firm expects a major correction.
Another metric that the BarnBridge project gives a bearish signal is the transaction volume. As Santiment explained, the altcoin project’s trading volume has already peaked, so it’s on the decline. Therefore, the analysis firm states that the altcoin is currently a high-risk asset.
