According to an analysis by cryptocurrency analyst Ali shared via a tweet post, current indicators might suggest a prime buying opportunity for Polygon’s MATIC. The 30-day, 365-day, and MVRV Z-Score Ratios have all plunged into negative territory. This shift often hints at an undervaluation of the asset, potentially positioning MATIC as an attractive investment for discerning buyers.
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Short-Term Analysis: The 30-Day MVRV Ratio
Ali’s analysis highlights that the 30-day MVRV ratio for MATIC has dipped below zero. This indicates that the average purchase price over the last month overshadows the current trading price. For short-term traders, such a scenario typically signals a possible undervaluation. Consequently, it might be a suitable time to buy, expecting a rebound soon.
Long-Term Perspectives: The 365-Day MVRV Ratio
Moreover, the 365-day MVRV ratio has also entered negative realms. This longer view suggests that the price is now below the yearly average, reflecting a potential loss for long-term investors. However, for those who trust in the enduring value of MATIC, this could be seen as a favorable entry point, especially if they are prepared to endure market fluctuations.
Additionally, the MVRV Z-Score is also negative. This metric serves to identify periods when an asset is extremely over or undervalued compared to its “fair value.” A negative Z-Score typically indicates that the asset is currently undervalued. Historically, such levels have often aligned with market bottoms, suggesting a possible pivot point for MATIC.
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Show more +Recent Price Movements and Market Sentiment
At the time of writing, MATIC trades at $0.747576, up 1.80% over the last day, according to CoinMarketCap data. Despite this slight uptick, the general price trend over the past months has shown significant downward movement. This trend, coupled with the current negative MVRV ratios, might imply that the sell-off has led MATIC to an undervalued state and potential buying opportunity for investors.
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