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.
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
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
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.
Disclaimer
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