200-day moving average price multiple

Legend - Green area is market price of coin, in US$; Blue line is ratio of green area divided by white line; White line is 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.