For the past seven weeks, the price of Polygon‘s coin (MATIC) has been gradually decreasing due to a falling wedge pattern. This pattern is characterized by two trendlines that slope downwards and act as both resistance and support. The MATIC price dropped from $1.29 to $0.588 because of this, resulting in a 54.3% decrease. However, the price found support at $0.625, suggesting the possibility of a bottom formation around this level during Bitcoin‘s halving event.
MATIC’s Negative MVRV Z-Score Hints at Undervaluation
The price of polygon coin has been stuck within a narrow band of around $0.772 and $0.588 for approximately two weeks now. This sideways trend suggests that the optimistic feelings towards Bitcoin’s halving have temporarily counteracted downward pressure, but there isn’t enough energy yet to trigger a significant price increase.
At the time this article is published, MATIC‘s price is $0.72, marking a 1.22% decrease on the day. The long wick forming at the resistance trendline suggests that the asset may soon revisit its lower support, potentially prolonging the current sideways trend.
An in-depth look at the larger market tendencies reveals that the polygon price hovers just above its 2-year-long symmetrical triangle support line. If this pattern persists, the altcoin has likely reached a major low, signaling the beginning of a new growth phase to reach the triangle’s peak boundary.
Additionally, according to a recent analysis posted by well-known trader @alicharts, it seems that Polygon’s native token, MATIC, might be a good buy based on some key indicators. This assessment is based on the fact that the 30-day, 1-year, and Market Value to Realized Value (MVRV) Z-Score Ratios have all moved into negative territory.
The 30-day, 60-day, and Moving Average Ratio of Value (MVRV) Z-Score for Polygon are all showing negative numbers. This could mean that the current dip in $MATIC prices is an excellent buying opportunity.
— Ali (@ali_charts) April 23, 2024
When several signs point to the same thing in the financial markets, this situation is typically seen by traders as a hint that an asset may be underpriced, potentially setting up a good opportunity for recovery and investment.
Thus, The MATIC is well-posited for a bullish reversal setting a potential target to $1.22.
Technical Indicator
- Relative Strength Index: The daily RSI slope rebounded from the oversold region highlights the buyers are accumulating this asset at a discounted price.
- BB indicator: The downtick in the lower boundary of the Bollinger Band indicator highlights the price is yet to give a better signal for reversal.
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2024-04-24 22:27