Polygon price could make a comeback with the support of its investors. This view suggests that the selling pressure in the broader market seems to be cooling, which could help the asset recover. MATIC price has been in a downtrend since the beginning of March and has not yet ended. However, considering that broader market signals are turning positive, the situation could change as the altcoin watches for potential recovery.
What is Happening on the Polygon Front?
These developments can be seen in the Relative Strength Index (RSI), which is a momentum indicator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in a market. The RSI level ranges from 0 to 100; levels above 70 indicate overbought conditions, while levels below 30 indicate oversold conditions.
For MATIC, the RSI level is currently in the bearish zone but has not yet reached the oversold zone. This indicates that market sentiment is still negative. However, being in the bearish zone without reaching the oversold level is often seen as a sign that a recovery might be on the horizon.
Additionally, the Market Value to Realized Value (MVRV) ratio also indicates improvement. The MVRV ratio evaluates an investor’s profit and loss. Currently, Polygon’s 30-day MVRV data is at -15%, indicating losses that could lead to buying pressure. Historically, MATIC MVRV between -10% and -20% usually signals the start of rallies, marking an accumulation opportunity zone.
MATIC Chart Analysis
MATIC price below $0.60 has witnessed a significant drop in the last few days. The native token of the Polygon network not only fell below the consolidation zone but also saw its lowest level in eight months. Considering the next critical support base is at $0.53, MATIC is already trading at $0.57.
A rebound or continuation of recovery from this support could push the altcoin price back into the $0.75 to $0.64 consolidation range. However, if the MATIC price falls below the support, it could drop below $0.50, invalidating the bullish thesis. This could make the bullish scenario much more challenging for the crypto asset.
