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200-day moving average price multiple

Chart notes:

  • Green area: Market price of coin, in US$;
  • Blue line: Ratio of green area divided by white line;
  • White line: 200-day moving average of green area.




200-day moving average price multiple explained

As discussed, the 200-day moving average (200-day MA) is generally regarded as the long-term trend indicator for market price; if the price is trading above the 200-day MA its trend is bullish, below the 200-day MA its trend is bearish.

However, we can also apply a valuation multiple to this price action and filter out the daily noise, if we simply divide the day's current price by this 200-day MA. Typically, a multiple well above 1 indicates overvaluation, and a multiple well under 1 indicates undervaluation.



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ETH: 0x39ec522498571aE99054472190f24f1944a471eB

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