POL, formerly MATIC, has bottomed out and is poised for a new high, analyst says

How to Buy Cryptocurrencies with a Credit Card in 2024

How to Buy Cardano in 2024

Learn How to Invest in Bitcoin in Brazil in 2024

The Best to Invest in 2024

Published

2 weeks ago

September 19, 2024

Stephen Douglas

Table of Contents

Follow Us @

POL, formerly MATIC, has bottomed out and is poised for a new high, analyst says
-Trending Marketing news, content marketing, latest Ways to rank your website, marketing discoveries, Local SEO, seo and social media marketing services. enjoy your stay on our website.

The MATIC cryptocurrency, from the Polygon network, which recently became POL, has been one of the worst performers in terms of appreciation this year. The cryptocurrency has accumulated a drop of more than 62% this year.

However, analyst Michael Ebiekutan suggests that the asset may have reached an inflection point and that there are signs of a possible price bottom.

After hitting a yearly high of $1.29 on March 13, POL/MATIC has since plummeted by over 70%, with its current price ranging between $0.36 and $0.39. According to data from IntoTheBlock, investors have acquired over 7 billion tokens during this price range.

YOU MAY HAVE MISSED:

Bitcoin is more attractive to investors than Ethereum, apparently because of this

According to Ebiekutan, this strong demand around this level could cause investors to defend the price, preventing a sharper drop.

Analysis of the cryptocurrency POL, formerly MATIC

“If MATIC drops below $0.36, we could see more selling pressure. However, this price range has strong support, which could signal that we have found a bottom,” the analyst said.

Another relevant piece of data highlighted by Ebiekutan is the MVRV (Market Value to Realized Value) ratio. This ratio measures the average profit or loss of addresses that purchased the token over a given period. According to data from Santiment, the 30-, 60-, 90-, 180-, and 365-day MVRV for MATIC is below zero. This indicates that most investors are operating at a loss.

Furthermore, the 365-day index, in particular, points to a loss of 96.9%, which could be a strong indicator that the price has already found its bottom. As the analyst pointed out, when the MVRV hits these low levels, it is a good indication that the price has already found important support.

However, the analyst also noted that the Total Value Locked (TVL) on the Polygon network has remained stable between $800 million and $900 million over the past year. This stability indicates a lack of renewed interest in decentralized finance (DeFi) projects on the Polygon blockchain.

YOU MAY HAVE MISSED:

Look at EFINITY Coin's Crypto Performance Today, June 6 2024

“This shows that despite the correction in price, there has not yet been a significant increase in on-chain DeFi activity, which could drive a stronger recovery,” he explained.

In the short term, Ebiekutan believes that POL/MATIC could start a recovery if it manages to break above the 50-day and 200-day moving averages. He points out that if the cryptocurrency’s price manages to sustain above $0.5812, it could see a significant rally.