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Polygon (MATIC) price faced a significant decline over the past 48 hours, bringing its two-week-long drawdown to a potential halt.
From here, the likely outcome will be an uptrend, making MATIC a rather profitable addition to portfolios.
Polygon Investors Bullish?
MATIC price under $0.900 is the first such instance since mid-February. The cryptocurrency marked a high of $1.26 in mid-March and since then has been engaged in a decline. This has resulted in the altcoin losing its value to the point where it seems like a rather good option to accumulate.
The Market Value evinces this to the Realized Value (MVRV) ratio as well. The MVRV ratio tracks investor gains/losses. Polygon’s 30-day MVRV, now at -14.75%, indicates losses, possibly prompting accumulation. Historically, MATIC within -5% to -15% MVRV often precedes rallies, terming this area as an opportunity zone.
Additionally, the possibility of selling MATIC among investors is rather low at the moment. The reason behind this is the lack of profits. According to the historical break-even metric, nearly 53% of all investors are at a loss, leaving less than 42% of investors in profit.
Given that the price is declining right now, 42% of investors will refrain from selling their holdings at a lower price than Polygon. This will give accumulators an opportunity to witness some upside, consequently pushing Polygon’s price upwards.
MATIC Price Prediction: Recovery Awaits
If Polygon investors make their next move bullish instead of bearish, the likely outcome will be a rise in MATIC price. Trading above the $0.88 support level, in confluence with the 100-day EMA, the altcoin will potentially bounce off from here to reclaim the $0.92 resistance.
This price level has been tested as support multiple times in the past and would serve as a boost to the Polygon token to breach the $1.0 price point.
However, if the $0.88 support is lost, the altcoin could slip to $0.81, and falling through this level would invalidate the bullish thesis, leaving MATIC vulnerable to losing $0.80.