Potential Upswing: MATIC, PEPE & ADA Prices Could Soar Despite Recent Bitcoin Crash
The current negative Market Value to Realized Value (MVRV) metric in the altcoin market indicates that Polygon (MATIC), Pepe coin (PEPE), and Cardano (ADA) may be in an oversold state, potentially signaling a forthcoming reversal in the market. The recent Bitcoin crash to below $60000 has caused Fear, Uncertainty, and Doubt (FUD) among market participants, leading to questions about the sustainability of the market and the possibility of a potential crash.
According to data from Santiment, the 30-day MVRV for Polygon (MATIC), Pepe coin (PEPE), and Cardano (ADA) has plummeted to -17.43%, -16.93% and -12.95%, respectively. These negative values suggest that investors who purchased these tokens in the past month are currently at a loss. This indicator is used to assess buy and sell opportunities based on the average entry for multiple users, with a negative value indicating that short-term holders are experiencing losses. However, long-term investors tend to accumulate in these zones as the risk of further sell-off is minimized, suggesting that these tokens have potential for a comeback if the crypto market bounces.
On the technical analysis side, the daily chart for Polygon (MATIC) shows a falling wedge pattern, which signals a weakening of bearish momentum and a potential breakout in the near future. Despite the recent Bitcoin crash, the MATIC price has managed to hold above the $0.35 support level, and currently trades at $0.4 with a market cap of $3.98 billion. A breakout from the overhead trendline could indicate the end of the correction and drive the price up to $0.55, with the Average Directional Index (ADX) at 55% accentuating an overextended downtrend.
Similarly, the frog-themed meme coin PEPE has experienced a significant price drop, but may seek support from the wedge pattern at $0.00000645 before a potential recovery leap. If the expected Bitcoin crash fails to materialize, the PEPE price could rebound and breach dynamic resistance, leading to a potential growth of 82% to $0.000013.
In the case of Cardano (ADA), the recent market recovery has seen the price bounce from an ascending trendline, driving the asset to trade at $0.32 with a market cap of $11.73 billion. The bullish momentum could potentially lead to a 30% rise to challenge the upper boundary of the broadening channel pattern. However, the Relative Strength Index at 37% and the diverging trendlines of the pattern signify a level of uncertainty among traders.
In conclusion, while the current market conditions may seem uncertain, the technical analysis of Polygon (MATIC), Pepe coin (PEPE), and Cardano (ADA) suggests potential opportunities for price reversals and recoveries in the near future. These findings should be taken into consideration by investors and market participants when making decisions in the altcoin market.
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