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- On-chain data indicators suggest a potential accumulation phase for Polygon’s MATIC, with the Market Value Relative to Realized Value (MVRV) ratio at -14.75%.
- Trading above the $0.88 support level and the 100-day Exponential Moving Average (EMA), there’s potential for a rebound to retest the $0.92 resistance, and beyond.
MATIC, the native cryptocurrency of the Polygon blockchain network has been struggling to hold its position above $1. The altcoin has faced a significant pullback from its high of $1.26 in mid-March. As of press time, the MATIC price is trading 1.5% up at a price of $0.9211 with a market cap of $9.1 billion.
On-chain data indicators suggest that this would be a good time to accumulate Polygon (MATIC) while expecting a potential uptrend from here onwards.
The Market Value Relative to Realized Value (MVRV) ratio also indicates investor sentiment. Currently, Polygon’s 30-day MVRV stands at -14.75%, suggesting losses, which could lead to accumulation. Historically, when MATIC’s MVRV falls within the range of -5% to -15%, it often precedes rallies, making this zone an opportunity area.
Furthermore, the likelihood of investors selling MATIC is currently low due to minimal profits. Based on historical break-even metrics, approximately 53% of investors are experiencing losses, leaving less than 42% in profit.
With the current price decline, the majority of investors are unlikely to sell their holdings below the Polygon’s value. This situation provides an opportunity for accumulation and potential upside movement in Polygon’s price.
Furthermore, the Polygon blockchain also continues to face some challenges in the DeFi space with the total value locked (TVL) lacking in comparison to other DeFi protocols. The total value locked on the Polygon blockchain network is just over $1.07 billion.
MATIC Price Action And Recent Polygon Upgrades
If the Polygon bulls decide to charge in, it could result in a major uptick in MATIC price. With the altcoin currently trading above the $0.88 support level, which coincides with the 100-day Exponential Moving Average (EMA), there’s potential for a rebound from this point to retest the $0.92 resistance.
Historically, this price level has acted as a support level on numerous occasions, providing significant momentum for the Polygon token to surpass the $1.0 price threshold.
Nevertheless, if the MATIC price falls under the $0.88 support level, there’s a possibility for the altcoin to decline to $0.81. Further downward movement past this point would nullify the bullish outlook, potentially exposing MATIC to further losses toward the $0.80 mark.
Last week, Polygon announced plans for a forthcoming upgrade named the “Napoli upgrade”, as reported by Crypto News Flash. This upgrade entails the integration of enhancements to parallel execution and new operational codes for the Ethereum Virtual Machine (EVM).
Following the implementation of the Napoli upgrade, the Mumbai Testnet, part of the Proof-of-Stake (PoS) network, is scheduled to be phased out in April. Subsequently, the Amoy Testnet will be introduced as its replacement.
Also, per the Crypto News Flash report, the Polygon blockchain remains the noted choice for top financial players like BlackRock to spearhead new innovation.