Polygon’s Path to Recovery: MATIC Eyes $1 Amid Investor Optimism

Analysis2mos agoUpdate 6086cf...
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In Brief

  • The MATIC price is attempting to break out of a downtrend that it has been stuck in for nearly a month now.
  • The decline in active deposits is signaling that investors are poised to refrain from selling going further.
  • The MVRV ratio in the opportunity zone further substantiates the potential for accumulation and recovery.

Polygon (MATIC) price is moving up on the charts after witnessing a bearish month, bringing the altcoin below $1.

However, in order to reclaim $1 as support, the altcoin will need to cross a few resistances.

Polygon Investors Turning Bullish?

MATIC price has historically exhibited a shift in tone following investors’ behavior. With the altcoin currently attempting a breach of the ongoing downtrend, investors’ bullishness will prove to be helpful to the altcoin.

This sentiment is also visible in the movement of tokens among addresses, primarily exchanges. As noted in the decline in active deposits, which calculates the movement of MATIC from investors’ addresses to exchange addresses.

Given Polygon’s active deposits are declining, the possibility of price reversal is inclining.

Polygon’s Path to Recovery: MATIC Eyes   Amid Investor Optimism
Polygon Active Deposits. Source: Santiment

This is further extended by the Market Value to Realized Value (MVRV) ratio. The MVRV ratio measures investor profit/loss. Polygon’s 30-day MVRV at -5.9% signals losses, potentially prompting accumulation. Historically, -4% to -14% MVRV often precedes rallies, termed an opportunity zone for accumulation.

Read More: How To Buy Polygon (MATIC) and Everything You Need To Know

Polygon’s Path to Recovery: MATIC Eyes   Amid Investor Optimism
Polygon MVRV Ratio. Source: Santiment

Thus, MATIC price will likely note recovery following accumulation from investors.

MATIC Price Prediction: $1 on the Cards

MATIC price, trading at $0.94 at the time of writing, has been stuck under a downtrend for nearly a month now. If the altcoin manages to close above the downtrend and successfully breach it, considering the above factors, the Polygon native could breach the $0.97 resistance.

This would allow MATIC price to reclaim $1.00, eventually enabling the cryptocurrency to break past the $1.02 resistance level. Once this level is broken, a breakout from the downtrend can be considered.

Read More: Polygon vs. Loopring: Ethereum Layer-2 Solutions Compared

Polygon’s Path to Recovery: MATIC Eyes   Amid Investor Optimism
MATIC/USDT 1-day chart. Source: TradingView

However, if this breach fails, MATIC’s price would fall through the $0.92 support level to test $0.88. Losing this support would result in the invalidation of the bullish thesis, pushing the Polygon token to $0.81.

Top crypto platforms in the US | April 2024

This article is sourced from the internet: Polygon’s Path to Recovery: MATIC Eyes $1 Amid Investor Optimism

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