Polygon (MATIC) price will likely struggle to find a direction given the mixed cues it receives from the market and investors.
While the possibility of a rally and decline are equally likely, MATIC is leaning more towards the former for this reason.
Are Polygon Investors Losing Faith?
MATIC price has been moving within a range for the past couple of days, and the credit for this goes to the lack of directional bias after Bitcoin halved. The altcoin is facing similar conditions from investors.
MATIC holders are exhibiting mixed signals, with active investors acting bullish to neutral while potential investors are making a bearish move. This is evident from the Mean Coin Age and Network Growth.
Mean Coin Age calculates the average age of all coins in circulation. It provides insights into the level of market activity and the potential for coin movement based on the age of the coins being transacted.
The incline in this metric hints at HODLing among investors, which is considered bullish during uptrends. This shows that investors are less inclined to sell their holdings, which supports price rises.
On the other hand, network growth is calculated by the rate at which new addresses are formed on the network. This measures whether a project is losing or gaining traction within the market.
Read More: How To Buy Polygon (MATIC) and Everything You Need To Know
This indicator is at a 12-month low when writing, effectively suggesting a lack of new investors on the network.
Thus, combining the two results in a potentially bearish-neutral outcome for MATIC price.
MATIC Price Prediction: Look out for This Range
MATIC price currently trades at $0.71 after failing to breach the resistance, which is marked at $0.76. This barrier has been in place for over a week now, and the case is the same for the support of $0.64. In the last couple of days, the latter has undergone testing twice, reinforcing and consolidating the range.
Simply put, altcoin might continue moving sideways between $0.76 and $0.61 for most parts. However, there is the potential for a breach of either limit.
By the looks of it, Ichimoku Cloud, a technical analysis tool that offers insights into support, resistance, and momentum, is bullish. The cloud is under the candlesticks, suggesting a price rise.
Read More: Polygon (MATIC) Price Prediction 2024/2025/2030
If MATIC’s price follows this cue and breaches the $0.76 resistance, it could increase and test $0.81. This could invalidate the bearish-neutral thesis, opening the Polygon native token to recovery.
Disclaimer
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