Bitcoin and altcoins, which have been struggling against sharp declines since October, experienced a slight recovery in the first days of 2026.
While it remains to be seen whether this recovery will continue, analysis firm Alphractal has stated that the cryptocurrency market is structurally weak.
In its latest analysis, Alphractal examined the MVRV Z-Score metric for Bitcoin (BTC), Ethereum (ETH), XRP, and Cardano (ADA).
The analytics company MVRV stated that the Z-Score indicates structural weakness in the cryptocurrency market despite high prices.
Analysts note that Bitcoin’s MVRV Z-score metric is weakening at each new peak, while Ethereum remains strong.
However, as investor confidence in XRP steadily declines, Cardano is entering potential accumulation zone.
Bitcoin and Ethereum Are Diverging!
The MVRV Z-score in Bitcoin continues to weaken after each new all-time high (ATH). The current MVRV level is below the 2024 level, indicating a decrease in on-chain strength despite continued price increases. This pattern suggests a weakening of confidence among long-term Bitcoin investors.
The situation appears different for Ethereum than for BTC. According to the analysis company, Ethereum’s MVRV Z-score briefly dropped into negative territory, presenting a different picture.
However, this level later acted as support for ETH, revealing that long-term investors were maintaining the current price levels through accumulation.
XRP is Declining, Cardano (ADA) is Shining!
The MVRV Z-score for XRP has recently shown a downward trend and continues to fall steadily. This indicates a decrease in investor confidence in XRP.
In Cardano, the situation is the exact opposite of XRP. According to the analysis company, Cardano’s MVRV Z-Score is in negative territory. While these negative readings are historically associated with accumulation phases rather than selling phases, it means that the current price is trading below the average fair value on the chain, indicating upside potential.
The analysis firm concluded that while price movements still support optimistic narratives, on-chain data points to structural weakness in Bitcoin, local resistance in Ethereum, loss of strength in XRP, and potential accumulation in ADA.
*This is not investment advice.
