Polygon (MATIC), a cryptocurrency that has been gaining traction among altcoins, now confronts a downward price trajectory. Its value has seen a significant drop from $1.26 to $1.05, signaling a potential move toward the $1 mark. This decline in price is supported by technical indicators suggesting a bearish outlook for the digital asset.
Technical Analysis Highlights Selling Pressure
The coin has slipped beneath crucial support levels, including the pivotal 50-day Exponential Moving Average, indicating a weakening market position. Notably, the Relative Strength Index and Moving Average Convergence Divergence, which track price momentum and market dynamics, favor a downtrend. These metrics are currently in regions that typically suggest the asset is poised for further losses.
Furthermore, the Market Value to Realized Value ratio, a metric used to assess whether investors are facing an average profit or loss, is dipping below the baseline. This movement is typically interpreted as a strong encouragement to sell, thus adding to the negative sentiment surrounding MATIC.
Seeking the “Opportunity Zone” for MATIC
Investors are closely monitoring the 30-day MVRV ratio, which reveals recent buyers’ average gains or losses. A -3% ratio suggests those who bought MATIC in the past month are already at a loss. Historically, when the MVRV falls to a range between -5% and -12%, it often signals an impending price recovery.
This range is known as the “opportunity zone,” where investors might consider accumulating the token. However, MATIC’s current standing is just above this critical area, which suggests it may experience further depreciation before presenting a more attractive buying opportunity.