Polygon Cryptocurrency Enters Promising Buy Zone, Potentially Forecasting Bullish Surge

16

The noteworthy cryptocurrency, Polygon (MATIC), is presently situated in a prominent buy zone, an area earlier recognized as the breakpoint for rallies that witnessed the digital asset surge by 112% and 87%. The identification of this promising pattern by a proficient analyst, Ali, leads to a potentially bullish forecast for the cryptocurrency.

A core component behind this promising forecast is the cryptocurrency’s 30-day Market Value to Realized Value (MVRV) ratio. The MVRV ratio is an on-chain indicator that monitors the proportion of Polygon’s market cap to its realized cap. The realized cap is a more comprehensive measure of total valuation, unlike conventional approaches that focus on the current spot price. It presupposes that the “real” value of any circulating coin is not its current spot price; instead, the price at which it was last transacted on the blockchain is taken into consideration.

Follow us on Google News! ✔️


In layman’s terms, the realized cap is the total wealth invested in Polygon by its investors. By consequently analyzing the MVRV ratio, one can gain insights into the profit-loss status of the market. The 30-day version of this ratio is particularly important as it explicitly accounts for investors who bought the asset in the past month.

A recent analysis of the Polygon MVRV chart displayed a significant dip into the negative territory, revealing that investors who bought within the past month have incurred noticeable losses. However, this could be a beacon of opportunity, considering past instances where similar levels have led to lucrative buying opportunities. Polygon’s return to this zone had previously resulted in a spectacular surges of 112% and 87%.

This pattern can be attributed to an intriguing market dynamic. The selling pressure relaxes as the 30-day investors bear losses, resulting in a reduction of potential profit-takers. Consequently, it allows room for a market rebound.

However, it remains speculative if this pattern will replicate itself and prove fruitful for Polygon this time around. The scale of the potential serge is also uncertain and will only be revealed with time.

As it stands, Polygon recorded a 3% price increase in the past 24 hours, with a price slightly above $0.93. This positive movement suggests that the MVRV ratio buy signal might already be in motion. The journey of this globally recognized cryptocurrency unfolds with a thrilling air of anticipation as investors keenly observe.