A recent report by on-chain analytics firm Santiment suggests that altcoins like Shiba Inu (SHIB), Cardano (ADA), and Dogecoin (DOGE) are positioned to outperform major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and XRP in the short term.

The analysis is based on the 30-day Market Value to Realized Value (MVRV) metric, which compares the market value of a cryptocurrency to its realized value. Santiment's report indicates that a lower MVRV ratio is a strong indicator of a higher probability for an imminent price rally.

Bullish Forecast for Altcoins

According to Santiment's data, Shiba Inu has the lowest 30-day MVRV at -19.1%, suggesting a significant bullish potential for the meme coin. Cardano and Dogecoin also exhibit strong bullish signals with 30-day MVRV values of -12.6% and -16.7%, respectively.

In contrast, Bitcoin, Ethereum, and XRP have relatively higher MVRV ratios of -4.0%, -4.3%, and -3.5%, respectively, indicating a less aggressive short-term rally potential compared to the altcoins.

Market Dynamics Favor Altcoin Rally

The current market conditions appear to be favorable for altcoins like Shiba Inu, Cardano, and Dogecoin. Shiba Inu, in particular, stands out with the lowest MVRV among the large-cap cryptocurrencies, suggesting it could be poised for a substantial price increase.

Additionally, the recent surge in the Shiba Inu burn rate and Crypto.com's decision to accept SHIB as a funding option for Visa cards have further fueled market sentiment towards the meme coin.

Dogecoin and Cardano also benefit from their community-driven momentum and ongoing technological developments, respectively, contributing to their favorable outlooks.

While Bitcoin, Ethereum, and XRP remain industry leaders, their relatively higher MVRV ratios suggest a less aggressive short-term rally potential compared to these altcoins.

As of writing, Shiba Inu, Dogecoin, and Cardano have all seen price increases, while Bitcoin has struggled to maintain a positive momentum despite a broader market recovery.