HomeNewsIs Polygon (MATIC) Ready for a Comeback? Analysing the Accumulation Phase

Is Polygon (MATIC) Ready for a Comeback? Analysing the Accumulation Phase

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  • MATIC trades at $0.8926, showing a 0.40% decrease from its recent high of $1.26 in mid-March, dropping below $0.91 in mid-February.
  • Polygon’s 30-day MVRV at -14.75% suggests a potential accumulation phase, historically signaling investment opportunities when falling between -5% to -15%.

MATIC trades at $0.8926, registering a 0.40% decrease over the last intraday session. Notably, it last traded below the $0.91 mark in mid-February, beginning a downward since hitting a peak of $1.26 in mid-March. The cryptocurrency’s downturn has prompted considerations for accumulation, with projections of a possible reversal.

According to santiment’s data, the Market Value to Realized Value (MVRV) ratio indicates this potential accumulation opportunity. Polygon’s 30-day MVRV currently stands at -14.75%, signalling losses for investors. Historically, when MATIC’s MVRV falls within the range of -5% to -15%, it often precedes rallies, presenting an “opportunity zone” for investment.

Furthermore, the likelihood of investors selling their MATIC holdings remains low due to limited profit margins. Historical break-even analysis reveals that approximately 53% of investors are at a loss, leaving less than 42% in a profitable position.

With the current dip in price, 42% of investors are HODLing their assets rather than selling at a lower price than Polygon’s current valuation. As such, this scenario allows accumulators to witness returns, resulting in an upward movement in Polygon’s price.

Anticipating a MATIC Price Recovery: Optimism on the Horizon

MATIC’s price could see a reversal if Polygon investors’ sentiments tilt towards a bullish stance rather than a bearish one. The coin trades above the $0.88 support level and aligns with the 100-day EMA.

With these positive metrics, MATIC could experience a northbound movement, recovering the $0.92 resistance level. This price point has demonstrated its significance as support in previous instances, potentially providing momentum for MATIC to breach the $1.0 mark.

However, a loss of support at $0.88 may lead to a decline in its price, with a possible target of $0.81. Further downward movement below this level would cast doubt on the bullish outlook, leaving MATIC susceptible to dropping to $0.80.

The current scenario suggests a pivotal moment for Polygon investors. If key support levels hold, the potential for a bullish trajectory is high. Nonetheless, if these levels are breached, there are risks of downward movement.

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