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Polygon’s Path to Recovery: MATIC Eyes $1 Amid Investor Optimism


Polygon (MATIC) price is moving up on the charts after witnessing a bearish month, bringing the altcoin below $1.

However, in order to reclaim $1 as support, the altcoin will need to cross a few resistances.

Polygon Investors Turning Bullish?

MATIC price has historically exhibited a shift in tone following investors’ behavior. With the altcoin currently attempting a breach of the ongoing downtrend, investors’ bullishness will prove to be helpful to the altcoin.

This sentiment is also visible in the movement of tokens among addresses, primarily exchanges. As noted in the decline in active deposits, which calculates the movement of MATIC from investors’ addresses to exchange addresses.

Given Polygon’s active deposits are declining, the possibility of price reversal is inclining.

Polygon Active Deposits.
Polygon Active Deposits. Source: Santiment

This is further extended by the Market Value to Realized Value (MVRV) ratio. The MVRV ratio measures investor profit/loss. Polygon’s 30-day MVRV at -5.9% signals losses, potentially prompting accumulation. Historically, -4% to -14% MVRV often precedes rallies, termed an opportunity zone for accumulation.

Polygon MVRV Ratio.
Polygon MVRV Ratio. Source: Santiment

Thus, MATIC price will likely note recovery following accumulation from investors.

MATIC Price Prediction: $1 on the Cards

MATIC price, trading at $0.94 at the time of writing, has been stuck under a downtrend for nearly a month now. If the altcoin manages to close above the downtrend and successfully breach it, considering the above factors, the Polygon native could breach the $0.97 resistance.

This would allow MATIC price to reclaim $1.00, eventually enabling the cryptocurrency to break past the $1.02 resistance level. Once this level is broken, a breakout from the downtrend can be considered.

Read More: Polygon vs. Loopring: Ethereum Layer-2 Solutions Compared

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

However, if this breach fails, MATIC’s price would fall through the $0.92 support level to test $0.88. Losing this support would result in the invalidation of the bullish thesis, pushing the Polygon token to $0.81.

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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.


Conclusion

In conclusion, the Polygon (MATIC) price is showing signs of recovery after a bearish period that pushed it below $1. Investors’ behavior and active deposits suggest a shift in sentiment towards the altcoin, with a potential price reversal on the horizon. The Market Value to Realized Value ratio also indicates a possible accumulation phase, with historical data pointing towards an opportunity zone for accumulation. If MATIC manages to breach the downtrend and surpass key resistance levels, such as $0.97 and $1.02, a breakout from the current bearish trend could be imminent. However, failing to breach these levels could lead to a drop in price, potentially testing support at $0.88 and $0.81.

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