The price of Polygon (MATIC) had a sharp drop during the previous 48 hours, potentially ending its two-week downturn.
An increase from here is probably in store, which makes adding MATIC to portfolios quite rewarding.
Are Polygon Investors Confident?
For the first time since mid-February, the MATIC price is below $0.900. The cryptocurrency has been declining since it reached a high of $1.26 in the middle of March. The altcoin has thus lost value to the point that it appears like a worthwhile investment to stockpile.
This is also demonstrated by the Realized Value (MVRV) ratio in the Market Value. The MVRV ratio monitors profits and losses for investors. At -14.75%, Polygon's 30-day mean volatility ratio (MVRV) suggests losses and may encourage accumulation. MATIC between -5% to -15% MVRV has historically been used to identify opportunity zones, which appear before rallies.
Furthermore, investors currently have very little opportunity to sell MATIC. This is because there aren't any profits. Based on the historical break-even figure, approximately 53% of investors are losing money, while less than 42% of investors are making money.
42% of investors will not sell their stocks at a price lower than Polygon because the price is currently dropping. Accumulators will thus have a chance to benefit from some upside, which will raise Polygon's price.
Forecast for MATIC Prices: Recoveries Are Expected
The MATIC price will probably increase if Polygon investors decide to take a bullish position instead of a bearish one. As long as the altcoin trades above the $0.88 support level and the 100-day EMA lines up, it may rise from this level and recapture the $0.92 resistance.
It would help the Polygon token surpass the $1.0 price threshold. This price level has been tried and tested as support several times in the past.
But if the $0.88 support is broken, the altcoin might drop to $0.81. If this happens, the bullish thesis would be refuted, making MATIC susceptible to a $0.80 loss.
April 2024, Cryptoniteuae