Time for Optimism or Brace for Downturn?
  • On-chain data indicators suggest a potential accumulation stage for Polygon’s MATIC, with a market value to realized value (MVRV) ratio of -14.75%.
  • It is trading above the $0.88 support level and the 100-day exponential moving average (EMA), which could lead to a bounce back to and above the $0.92 resistance.

MATIC, the native cryptocurrency of the Polygon blockchain network, has struggled to sustain positions above $1. The altcoin is facing a significant drop from its mid-March high of $1.26.As of this writing, the price of MATIC is trading 1.5% The price rose to $0.9211, giving it a market cap of $9.1 billion.

On-chain data indicators suggest that now is a good time to accumulate Polygon (MATIC) while looking forward to a potential uptrend.

The market value to realized value (MVRV) ratio also indicates investor sentiment. Currently, his 30-day MVRV for Polygon is -14.75%, which suggests losses and could lead to accumulation. Historically, if his MVRV in MATIC is in the -5% to -15% range, it often precedes a rally, making this zone an area of ​​opportunity.

courtesy: Santimento

Furthermore, investors are unlikely to sell MATIC at this point as profits are minimal. Based on historical break-even indicators, approximately 53% of investors have experienced losses and less than 42% have left with a profit.

With the current price decline, the majority of investors are unlikely to sell their holdings for less than Polygon’s value. This situation provides an opportunity for Polygon’s price to accumulate and potentially rise.

Additionally, the Polygon blockchain continues to face some challenges in the DeFi space due to its lack of Total Value Lock (TVL) compared to other DeFi protocols. The total amount locked in the Polygon blockchain network is just over $1.07 billion.

MATIC Price Action and Recent Polygon Upgrades

If Polygon bulls decide to attack, it could lead to a significant rise in MATIC price. The altcoin is currently trading above the $0.88 support level, which coincides with the 100-day exponential moving average (EMA), so it could rebound from this point and retest the $0.92 resistance.

Historically, this price level has acted as a support level many times, providing significant momentum for the Polygon token to cross the $1.0 price threshold.

Nevertheless, if the MATIC price falls below the $0.88 support level, the altcoin could fall to $0.81. Further decline beyond this point could invalidate the bullish outlook and expose MATIC to further losses towards $0.80.

As reported by Crypto News Flash, last week Polygon announced an upcoming upgrade plan dubbed the “Napoli Upgrade.” This upgrade includes parallel execution enhancements and the integration of new operation code for the Ethereum Virtual Machine (EVM).

Following the implementation of the Napoli upgrade, the Mumbai Testnet, which is part of the proof-of-stake (PoS) network, will be phased out in April. Later, Amoy Testnet will be introduced as its replacement.

And according to a Crypto News Flash report, the Polygon blockchain remains a hot option for top financial players like BlackRock to spearhead new innovations.

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