MATIC’s bear phase confirmed! Is $0.40 next for the altcoin?

    MATIC finding it difficult to find its footing after almost all its holders fell out of profits
    MVRV indicator revealed that the token was in a bear phase and would need a 13% hike to escape

As a long-term crypto investor with experience in the market, I’ve seen my fair share of ups and downs. But the current situation with Polygon (MATIC) is particularly disappointing. After hitting a yearly high of $1.27 in March, the token has been on a steady decline, leaving most of its holders out of profit.

As a researcher, I’ve noticed that the situation for Polygon [MATIC] has deteriorated significantly following the recent market correction. To put it more precisely, the value of the token dropped drastically to reach a low of $0.43 on July 5th.

From my research, the last occasion when MATIC reached this price point was during the summer of 2022. It’s important to note that at that juncture, the cryptocurrency market was experiencing a significant downturn, characterized as a bear market.

The recent drop in MATIC‘s value mirrors the trend seen in the larger cryptocurrency market. Yet, there appears to be an isolated factor affecting it separately.

It is generally assumed that a significant number of investors holding the top 20 cryptocurrencies have experienced profits at some point. However, when it comes to Matic, is this assumption accurate?

Polygon finally leaves “green land”

Sadly, MATIC falls short in this aspect. As reported by IntoTheBlock, an astounding 97% of the project’s current token holders are experiencing losses as they are holding onto their MATIC tokens at prices lower than what they initially paid.

Approximately 3% of the holders have neither made a profit nor incurred losses on their MATIC, as they’re currently at the breakeven point.

In March, the price of Polygon’s native token peaked at a yearly high of $1.27, generating profits for numerous investors. Unfortunately, since that time, the value of this altcoin has only declined.

As a crypto investor, I’ve noticed that the value of the digital currency has recovered and is currently sitting at around $0.46 at the current market price. Yet, there lies a significant resistance level ahead, with sellers potentially flooding the market if the price drops down to $0.49 or below.

MATIC’s bear phase confirmed! Is $0.40 next for the altcoin?

Within this region, approximately 550 addresses have transacted a total of around 20.47 million MATIC tokens. Consequently, should the price edge closer to this value, it’s likely that investors would consider offloading their holdings.

If the situation arises where the token’s value falls back to $0.43, it could be due to decreased demand. On the other hand, if buying pressure grows stronger, bulls may try to shatter this resistance level.

If it proves fruitful, MATIC may touch the $0.51 mark again according to chart predictions. However, this scenario seems improbable at present.

Are the bears here to stay?

Furthermore, AMBCrypto determined whether MATIC had re-entered the bear market by examining the Market Value to Realized Value (MVRV) Ratio’s Long-Term and Short-Term components.

“This measurement compares the Mean Value Realized Price (MVRP) gap between investors who have held a token for a long time, and those who are currently buying it.”

When a metric is positive, it signifies that the token is experiencing a bull market or an uptrend. On the other hand, a negative reading indicates a bear market or downtrend for that token.

The MVRV Long/Short Difference for the project came in at -13.75%, implying that MATIC is currently held in a losing position. In order to escape this bearish territory, the token’s price would need to increase by approximately 13%.

MATIC’s bear phase confirmed! Is $0.40 next for the altcoin?

Read Polygon’s [MATIC] Price Prediction 2024-2025

Should this event transpire, the token could make another attempt at reaching its prior highs. On the other hand, if it fails to do so, the price may drop once more.

This time, it could be drop as low as $0.40.

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2024-07-06 07:03