Mapping MATIC’s path to $1.20 and how you can take advantage of it

    On-chain analysis spotted a buy signal that participants might find useful
    MATIC’s price might hike towards $1.20 in the short term

According to AMBCrypto’s assessment, the 23.64% drop in MATIC‘s value over the past month could represent a valuable buying opportunity. This view is supported by the altcoin’s negative Market Value to Realized Value (MVRV) ratio of -6.54%. In simpler terms, the price decline has caused the market value of MATIC to be significantly lower than its realized value, potentially making it an attractive investment for some.

The given ratio indicates whether MATIC holders have made a profit or incurred losses. In simpler terms, if every MATIC token holder were to sell their tokens at the current price, they would on average experience a loss of 6.54%. Yet, this statistic may also hint at an opportunity for buying before a potential price increase, based on MATIC’s historical trends. This observation could be mere speculation, but it can be supported by analyzing past performance.

Mapping MATIC’s path to $1.20 and how you can take advantage of it

MATIC looks set for the good old days

On November 30, 2023, the MVRV ratio for MATIC stood at a negative 5.06%. At that time, the token was priced at $0.75. Subsequently, its value surged to $0.92 just a few days later. A similar price increase took place in January when the token cost $0.70. Within a short period, MATIC‘s price went beyond $1. Consequently, there is a likelihood that the token may experience such a price surge once more.

Additionally, it’s important to examine the potential investment from a technical standpoint, as AMBCrypto did. The bulls had established a position near the $0.89 support level on the 4-hour charts by April 8th.

After surpassing the $0.91 barrier, the token managed to do so. Currently, MATIC is priced at $0.93. Bullish investors are looking forward to pushing its value towards $1.

The RSI, or Relative Strength Index, has shifted downwards, suggesting that the bullish momentum for MATIC may be weakening. Given the current market trend, it could prove difficult for MATIC to rise in value during the coming days.

Instead of pushing against it, if demand for purchasing increases, the cryptocurrency may surpass its resistance level. According to the Fibonacci indicator, there’s a possibility that MATIC could reach a price of $1.67 under such circumstances.

Mapping MATIC’s path to $1.20 and how you can take advantage of it

Will the revival be easy?

The bulls’ strength is a crucial factor in this projection. Yet, if bears continue to lead, the optimistic outlook may no longer hold true.

We also examined the Cumulative Liquidation Levels Delta (CLLD). According to AMBCrypto’s analysis, the substantial liquidity existing between $0.95 and $0.98 suggested a potential price increase for MATIC towards that range.

If that happens, short positions with a high level of leverage are at risk of being eliminated. Additionally, those with moderate leverages may experience losses as well due to the significant drop.

At the same time, a positive CLLD signaled a situation with high potential risks and rewards. Interpreting it this way could lead to a pessimistic outlook for MATIC in the near future, possibly causing a price decrease.

Mapping MATIC’s path to $1.20 and how you can take advantage of it

Read Polygon’s [MATIC] Price Prediction 2024-2025

Once the downturn comes to an end, there’s a strong possibility that the price of the cryptocurrency will bounce back and potentially reach $1.20.

Read More

2024-04-10 09:11