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IS Now Polygon’s (MATIC) Golden Hour? Unpacking the Accumulation Phase

2 mins
Updated by Ryan James
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In Brief

  • MATIC price is currently just under the $0.90 mark and could continue its downtrend up to a certain point.
  • However, per the MVRV ratio, the asset is currently in the best position to be accumulated.
  • Since more than 50% of all investors are currently facing losses, the possibility of selling is rather low.
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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.

Polygon MVRV Ratio.
Polygon MVRV Ratio. Source: Santiment

Read More: How To Buy Polygon (MATIC) and Everything You Need To Know

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.

Polygon Historical Break-Even.
Polygon Historical Break-Even. Source: IntoTheBlock

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.

MATIC/USDT 1-day chart.
MATIC/USDT 1-day chart. Source: TradingView

Read More: Polygon (MATIC) Price Prediction 2024/2025/2030

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.

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Disclaimer

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.

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Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
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