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


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

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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Conclusion

In conclusion, Polygon’s price decline over the past 48 hours appears to have reached a potential halt, and an uptrend is anticipated, making MATIC a profitable addition to portfolios. The MVRV ratio indicates possible accumulation opportunities, with historical data showing that MATIC within -5% to -15% MVRV often precedes rallies. The possibility of selling MATIC among investors is currently low due to the lack of profits, as a significant percentage of investors are at a loss. Furthermore, if Polygon investors choose a bullish stance, the price is likely to rise, aiming to reclaim key resistance levels and potentially breach the $1 mark. However, failure to hold support levels could lead to further downside for MATIC.

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