- The potential increase may keep more than 17.34% of holders in profits.
A decline in the MVRV Z Score might invalidate the bias, and probably send the MATIC to $0.61.
As an experienced analyst, I believe that the current situation with Polygon (MATIC) is crucial for its holders and potential investors. Based on IntoTheBlock data, around 17.34% of token holders are currently in profits, which could keep them invested if the price continues to rise. However, a decline in the MVRV Z Score might invalidate this bullish bias, potentially sending MATIC down to $0.61.
Based on IntoTheBlock’s data, approximately 31,000 different wallets have bought around 216.94 million Polygon [MATIC] tokens, with an average purchase price of about $0.73 per token.
At the current moment, this mark represented no loss or gain for those in possession of MATIC tokens. Yet, it could be a significant threshold. Approximately 111,724 addresses, equivalent to 17.34% of the total token circulation, were enjoying profits at that price point.
Among the total addresses, approximately 77.85%, equating to 501,710 addresses, showed an “out of the money” situation. The significance of the $0.73 level for Polygon’s native token hinges on its future price movement; it may act as either support or resistance.
This cohort holds the key
Reaching a new high at $0.73 could push MATIC‘s price up to $0.76. At this point, approximately 36.69 million tokens have been amassed. If this trend continues, the cryptocurrency may initiate its advance towards $0.83.
An unexpected collapse could lead the price of MATIC to reach as low as $0.61, which is where many profitable holders initially purchased their tokens. Currently, the value of MATIC has decreased by 4.37% over the past day.
Should the token maintain this momentum, MATIC’s next move could be a rise between $0.83 and $0.89.
Among other contenders, Ethereum (ETH) is a notable altcoin that could shape the future price trend.
Based on our analysis, the correlation of Polygon with Ethereum was extremely strong at 0.93. In contrast, the correlation between Polygon and Bitcoin was substantial but not as tight, with a reading of 0.87. Correlation values can range from negative one to positive one.
When the reading approaches -1, it indicates a significant price discrepancy between the cryptocurrencies. Conversely, a reading near 1 signifies that their value trends are closely aligned.
As an analyst, I’ve observed a potential correlation between Ethereum (ETH) and Matic (MATIC) prices. If ETH manages to avoid dipping below the $3,000 mark, MATIC could potentially surge up to $0.83. Conversely, if Ethereum experiences a price decline, MATIC may initiate another correction towards $0.61.
It’s make or break this time
Based on the analysis of on-chain data from Santiment, a further decrease in the token’s price could potentially signal a shift towards a bearish trend.
AMBCrypto got this inference after checking the Market Value to Realized Value (MVRV) Z Score.
As a researcher studying cryptocurrency markets, I’ve found that when the MVRV Z-Score for a particular token falls below zero, it suggests that the token has experienced more realized losses than gains. This bearish signal may make it challenging for the token’s price to rise significantly in the near term.
As a crypto investor, I’d interpret a positive MVRV Z Score of 0.19 for Polygon as a sign that the market value of my holdings is greater than the realized value, suggesting potential appreciation in price.
Should the reading continue to decline, the bullish projection previously stated may no longer hold true. On the other hand, a swift rise in this metric could prevent MATIC from reaching a more challenging phase.
Realistic or not, here’s MATIC’s market cap in ETH terms
Traders should be cautious and monitor developments before making a move, as the current situation may impact the token’s value. Additionally, the data might signal that the token is underpriced.
As an analyst, I would interpret this statement as follows: If approximately four million addresses purchase MATIC tokens at an average price of around $0.73 each, it may indicate that the market has entered a bullish phase and the potential for a bear cycle could be mitigated or even avoided.
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2024-05-07 09:11