LIVEMATIC MVRV Ratio Flashes Rare Buy Signal Amid
Push Toward $1
Market data suggests Polygon (MATIC) may be poised for an impending price resurgence, as its
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30-day MVRV (Market Value to Realized Value) ratio flashes an unusual buy signal.
Wise Advice, a crypto analyst, called attention to this metric, citing data presented by market veteran Ali Martinez. Notably, the MVRV ratio compares an asset’s market value to its realized value in an attempt to assess if the asset’s price is overvalued or undervalued.
The ratio recently dropped to the negative territory, suggesting that MATIC has slipped to the undervalued zone, and is primed for a rebound. Wise Advice emphasized that the last two times the MVRV ratio dropped to this level, MATIC saw substantial price surges.
The metric slipped to undervalued territories in August 2023, when Polygon’s price dropped to the $0.5 threshold. Shortly after this descent, the crypto asset attempted a recovery push but faced resistance at the 50-day EMA ($0.648), leading to another slump.
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However, after reaching a floor of $0.493 in September 2023, MATIC embarked on a bullish rally, surging to a high of $0.983 on Nov. 14, 2023. Nonetheless, the MVRV ratio dropped again when Polygon fell from the $0.983 high, eventually re-entering the undervalued zone in January this year.
