MVRV is an indicator of the ratio between realized value and market value and is an on-chain tool that indicates whether the market is overvalued or undervalued. By applying 30-day and 365-day moving averages to the indicator and examining the positional relationship, you can see changes in market momentum.

After three months of repeated adjustment and recovery, the slope of 365 DMA became gentle. The problem is that the 30 DMA is falling steeply and looks like it will reach a deadcross sooner or later. This may be a somewhat negative sign, considering that a full-fledged bear market began after MVRV momentum showed a deadcross in the last cycle. However, since 365DMA acts as a major support and resistance section of the macro trend, if the market recovers from what it is now, it may act as support rather than resistance.

Written by Yonsei_dent