MVRV, an on-chain indicator measuring the ratio between realized value and market value, provides insights into whether the market is overvalued or undervalued. By analyzing the 30-day and 365-day moving averages (DMA) of MVRV, we can observe shifts in market momentum.
After three months of adjustments, the 365 DMA has stabilized. However, the 30 DMA is declining rapidly and may soon form a deadcross, historically a bearish signal. Despite this, the 365 DMA often serves as a critical support and resistance level. If the market recovers, the 365 DMA could act as a support, suggesting potential for a positive market outlook.