- 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
Things have gone from bad to worse for Polygon [MATIC] after the latest market correction. To be very specific, the price of the token plummeted to $0.43 on 5 July.
To put this into perspective, the last time MATIC hit this level was back in July 2022. At the time, the crypto market was in a full-blown bear phase.
MATIC’s recent decline has been in line with that of the broader market. However, on a singular front, it seemed to be all on its own.
Now, one normally expects most or at least some of the top 20 cryptos’ holders to be in some form of profit at some point in time. Is that really the case with MATIC though?
Polygon finally leaves “green land”
Well, the bad news is that MATIC cannot boast of the same thing. According to IntoTheBlock, 97% of the project’s active addresses are out of the money now. In simple terms, this means that they are holding the token at a loss.
The remaining 3% are not in profit, but are at breakeven point, meaning that no MATIC active holder has unrealized gains.
In March, the price of Polygon’s native token had reached a yearly-high of $1.27, putting many holders in the money. Since then, however, it has been all down for the altcoin.
At press time, the cryptocurrency was able to find its way back to $0.46. However, it was yet to face a huge sell-wall at a minimum price of $0.49.
Source: IntoTheBlock
In this zone, 550 addresses bought 20.47 million MATIC. Thus, if the price approaches this level, there is a high chance that investors would be willing to sell.
Should this be the case, the value of the token might drop again to $0.43. However, should in case buying pressure increases, bulls might attempt to break this wall.
If that is successful, MATIC might retest $0.51 on the charts. For the time being though, that is an unlikely possibility.
Are the bears here to stay?
Additionally, AMBCrypto evaluated if MATIC had fallen back into the bear phase or not. To do this, we checked the Market Value to Realized Value (MVRV) Long/Short Difference.
This metric calculates the difference between the MVRV ratio of long-term holders and that of those newly accumulating a token.
When the metric is positive, it means that the the token is in a bull phase. However, if the reading is negative, it implies that a bear phase.
For the project, the MVRV Long/Short Difference was -13.75%, indicating that MATIC was caught within the claws of the bears. For it to get out of the zone, the price has to hike by 13%.
Source: Santiment
Read Polygon’s [MATIC] Price Prediction 2024-2025
If this happens, the token might attempt retesting previous highs. However, if it does not achieve this, the price might fall again.
This time, it could be drop as low as $0.40.
This news is republished from another source.
