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Polygon (MATIC) Price Rise Could Stem from Losses

2 mins
Updated by Ryan Boltman
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In Brief

  • MATIC price has been up by 5% over the last 24 hours after declining by 36% since mid-May, and is trading at $0.50.
  • The RSI sitting in the oversold zone is signaling that the altcoin could be looking at a trend reversal.
  • At the moment, less than 8% of all the addresses are witnessing profits, which will help keep selling at a minimum.
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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

MATIC RSI. Source: TradingView

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 Break Even Price.
MATIC Break Even Price. Source: IntoTheBlock

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

MATIC Price Analysis.
MATIC Price Analysis. Source: TradingView

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.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...