Bitcoin price is facing increased risk of further decline, currently trading at $65,370. The lack of demand in the ETF channel is concerning, and yesterday’s market behavior encouraged sellers. However, signals suggest that a popular altcoin is at the right level for purchase.
Polygon (MATIC)
For the first time since mid-February, the MATIC Coin price has fallen below $0.9. The increased risk of a Bitcoin price drop and losses over the last 24 hours have spurred sellers into action. Since reaching a peak of $1.26 in mid-March, MATIC Coin has been losing value. During the same period, Genesis’s GBTC sales turned the overall market sentiment negative, leading to movements in many cryptocurrencies.
Should You Buy MATIC Coin?
According to the MVRV ratio, current levels may indicate a good time to buy MATIC Coin. The MVRV ratio measures the realized loss relative to market value, and at the time of writing, the 30-day MVRV is at -14.75%. Historical data shows that buyers who purchased within the -5% to -15% range have made profits from their investments.
Furthermore, this data suggests that investors have already absorbed losses, so unless there is an unusually large market downturn, investors may be less inclined to sell. In other words, the weak hands have already left, and now those with medium to long-term optimism continue their struggle. Currently, 42% of investors are at a loss over a broader time frame.
The loss rate among investors who bought in the last 30 days and overall could be encouraging at its lowest point. Of course, no one can predict the future, and we have seen historical data fail (for example, BTC could not maintain its previous ATH of $20,000 as support during the next bear market).
MATIC Coin Price Prediction
If the feared Bitcoin downturn begins in the coming hours, the MATIC Coin price could fall below the support level of $0.88 along with the 100-day EMA. Below that, the loss of the $0.88 support could lead to a pullback to $0.81. Losing this last support area would be significant as it could damage the medium-term bullish outlook.
In the opposite scenario, if the $0.92 resistance is reclaimed, the price could target $1 again.
