Polygon (MATIC) Poised for April Bull Run Despite Recent Setbacks

Polygon (MATIC) trend in the last 24 hours has been in a bull-bear tussle, with the price swaying between an intra-day high and low of $0.8628 and $0.8958, respectively. However, with the bears seizing market control at press time, MATIC was exchanging hands at $0.8809, a 0.37% decline after failing to breach the resistance.

MATIC/USD 24-hour price chart (source: CoinMarketCap)

On-chain Analysis Suggests Potential Upswing for MATIC

Recent on-chain analysis has identified a potential buy signal for MATIC, indicating a possible upward movement in the short term. Despite a 23.64% decline over the last 30 days, analysis suggests that MATIC might be poised for a rebound, with the Market Value to Realized Value (MVRV) ratio indicating an accumulation opportunity. 

The current 30-day MVRV ratio stands at -6.54%, suggesting that holders may be at a loss if they sell but also hinting at a chance for accumulation before a potential rally.

MATIC/USD MVRV Ratio

Historical data supports this notion, with instances in the past where MATIC's price experienced significant climbs following periods of negative MVRV ratios. For example, cases in November 2023 and January 2024 saw MATIC's price surge shortly after similar MVRV readings, indicating a possible pattern that could repeat in the current market conditions.

Technical Analysis and Price Forecast for MATIC

From a technical perspective, MATIC's recent performance on the charts provides further insight into its potential trajectory. Analysis of the 4-hour charts reveals a bullish sentiment around the $0.86-support level, amd with the next resistance at $0.91-resistance level. However, the Relative Strength Index (RSI) rating of 38.94 and moving southwards suggests waning bullish momentum, posing challenges for further appreciation in the short term.

MATIC/USD 4-hour price chart (source: TradingView)

Despite this, the Fibonacci indicator indicates a potential rise to $1.67 if buying pressure increases and the cryptocurrency breaks through resistance levels. However, the Cumulative Liquidation Levels Delta (CLLD) suggests a high risk-to-reward scenario, with a bearish bias potentially leading to a retracement in the short term.

MATIC's Path to Recovery

As MATIC aims to recover from its recent decline, various factors come into play that could either hinder or facilitate its path to $1.20. While historical data and on-chain analysis suggest potential accumulation and upward movement, technical indicators highlight challenges such as waning bullish momentum and high-risk scenarios.

The decline in active deposits and the MVRV ratio signal investor optimism and a potential reversal in the price trend. However, the cryptocurrency market's volatility and external factors could influence MATIC's performance in the coming days. Traders and investors are advised to carefully monitor key support and resistance levels to gauge the cryptocurrency's future direction accurately.

MATIC/USD 24-hour price chart (source: TradingView)

Despite recent challenges, MATIC's price retest of the bottom of the ascending channel indicates a potential bullish upswing, supported by favorable market indicators. The Market Value to Realized Value (MVRV) ratio suggests that MATIC may be undervalued and positioned within a buy zone, potentially leading to substantial gains. Consequently, analysts project a bullish rally for MATIC in April, with key resistance levels at $1.08 and $1.30 presenting significant price action opportunities.