Polygon (MATIC) price has noted nothing but declines for the past month and a half and will likely switch to rising now.
The changing market conditions, as well as the resurging demand for MATIC, could help the recovery.
Polygon Investors Are at a Loss
MATIC price is looking to make a comeback with the receding bearishness, given the altcoin has already dipped into the oversold zone. The Relative Strength Index (RSI) currently indicates that the altcoin is oversold, suggesting a potential trend reversal in the near future.
The RSI, a momentum oscillator that measures the speed and change of price movements, has slid into the oversold zone.
This typically implies that the asset may have been sold off too aggressively and could be due for a rebound. Traders and analysts often view such RSI levels as a signal for potential buying opportunities, anticipating a reversal in the downtrend as selling pressure wanes.
Read More: How To Buy Polygon (MATIC) and Everything You Need To Know
Additionally, market data reveals a noteworthy statistic about MATIC holding addresses. Presently, fewer than 8% of all MATIC holding addresses are in a profitable position, which can significantly influence market behavior.
When a large majority of holders are at a loss or not yet profitable, it tends to discourage selling. Investors are less likely to sell at a loss, which could potentially stabilize the price or even create upward pressure as buyers perceive the current price levels as attractive.
As fewer holders are looking to realize profits or cut losses, there may be less incentive for widespread selling. This phenomenon often results in a stabilization of the asset’s price or, in some cases, a gradual recovery if buying interest increases.
MATIC Price Prediction: Breaking Barriers
The MATIC price is currently at $0.50 on a three-day chart. The macro outlook aligns with the aforementioned potential for recovery. Bouncing off $0.49, the altcoin is aiming to breach $0.60, which is the next major barrier in recovery.
Should this happen, the altcoin would be open to reentering consolidation between $0.75 and $0.64. Eventually, a breakout will lead to gains.
Read More: Polygon (MATIC) Price Prediction 2024/2025/2030
On the other hand, a failed breach could keep it within $0.53 and 0.64, minimizing the opportunity for gains for the investors. This could invalidate the bullish thesis and keep MATIC price subdued until stronger bullish cues arrive.
Disclaimer
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