Market data indicates that Polygon (MATIC) may be on the brink of a significant price resurgence, as its 30-day Market Value to Realized Value (MVRV) ratio signals an unusual buy opportunity.
Wise Advice, a prominent crypto analyst, highlighted this metric, referencing insights from experienced market analyst Ali Martinez. The MVRV ratio compares an asset’s market value to its realized value to gauge whether its price is overvalued or undervalued.
Recent data shows the MVRV ratio dipping into negative territory, indicating that MATIC has entered the undervalued zone and could be poised for a rebound. Wise Advice noted that previous instances of the MVRV ratio dropping to similar levels were followed by substantial price increases for MATIC.
In August 2023, for example, Polygon’s price dipped to $0.5, coinciding with a decline in the MVRV ratio. However, MATIC later experienced a bullish rally, reaching a high of $0.983 in November 2023. Similarly, after a drop from this high, MATIC re-entered the undervalued zone in January 2024 before rallying again.
Recent market corrections led to a decline in the MVRV ratio, reaching a low of -12.13, suggesting potential for a price rebound. Wise Advice anticipates a resurgence in MATIC’s price, which currently hovers around $0.9, particularly as the broader market shows signs of recovery.
As of writing, MATIC has recorded two consecutive days of gains, trading at $0.928, with potential for further increases if it breaches key resistance levels at the 200-day EMA ($0.965) and the 50-day EMA ($0.984) to surpass the $1 mark.