Polygon (MATIC) price was among the biggest losers during the recent crypto market correction, falling by 31%.
However, the only way for MATIC holders is up from here on, and they will likely act similarly.
Polygon Investors Seek to Buy Over Selling
MATIC price correction extended losses to the point where investors opt not to sell their holdings, given they cannot offset their losses. Instead, altcoin presents better opportunities for accumulation.
This is displayed in the Market Value to Realized Value (MVRV) ratio. The MVRV ratio monitors investor profits and losses. Polygon’s current 30-day MVRV of -19% implies losses, potentially leading to accumulation. Historically, MATIC tends to recover within the -8% to -18% range, terming it an opportunity zone.
Beyond simple opportunity, the investors have a reason to act bullish since close to 1 billion MATIC is on the verge of losing profits. The supply of 969 million MATIC worth over $658 million was bought between $0.67 and $0.73.
Read More: How To Buy Polygon (MATIC) and Everything You Need To Know
Given that MATIC price is currently at $0.68, the supply is not far from becoming loss-bearing.
Thus, slight bullishness would result in this supply becoming profitable once again. This would result in the initiation of a rally.
MATIC Price Prediction: Watch out for These Two Resistances
MATIC price is expected to make a recovery from the trading price of $0.68; however, to make the aforementioned supply profitable, the altcoin would need to breach and flip $0.70 and $0.74 resistance levels into support.
This would enable the Polygon native token to rally towards $0.80 and beyond.
Read More: Polygon (MATIC) Price Prediction 2024/2025/2030
However, if these resistances are not breached, MATIC price could fall through the support of $0.65. This would invalidate the bullish thesis, resulting in a further drawdown towards $0.60.
Bitrue