- The potential increase can keep more than 17.34% of holders in profit.
- A decline in the MVRV Z score could negate the bias and likely send the MATIC to $0.61.
According to IntoTheBlock, Polygon [MATIC] It was at a point where 31,000 addresses purchased 216.94 million tokens at an average price of $0.73.
This was a break-even point for these forks, but could also serve as a break-even point. critical level for MATIC. At press time, 111,724 addresses, representing 17.34% of the total supply, were in profit.
On the other hand, 501,710 addresses, which is an incredible 77.85%, were left without money. Depending on where the native Polygon token moves next, the $0.73 region could be either support or resistance
.
This cohort holds the key
A break above $0.73 could take MATIC to $0.76, where 36.69 million tokens were accumulated. If this is the case, the cryptocurrency price could begin its breakout to $0.83.
However, a breakout could trigger a drop to $0.61, where most of the profitable holders had their entries. At press time, the price of MATIC had fallen 4.37% in the last 24 hours.
If the token maintains this momentum, MATIC’s next move could be an increase between $0.83 and $0.89.
In addition to the participants, Ethereum [ETH] is an altcoin that could influence the next direction of the token.
According to our findings, Polygon’s correlation with ETH was 0.93. With bitcoin [BTC], was 0.87. Correlation readings range from -1 to +1.
When the reading is close to -1, it implies a divergence in prices. On the other hand, a reading close to 1 suggests that cryptocurrency values are moving in almost the same direction.
Therefore, if ETH avoids a drop below $3,000. MATIC could rise to $0.83. However, if the price of the second most valuable cryptocurrency declines, MATIC price could begin another correction to $0.61.
This time it is decisive
In terms of correction, Santiment on-chain data. presented that another drop in the token could send it into a bearish phase.
AMBCrypto derived this inference after checking the Market Value to Realized Value (MVRV) Z-score.
When the MVRV Z score is less than zero, it implies that a token is dealing with a bearish dominance and it could be difficult for the price to rise.
However, when the metric increases in the positive region, it suggests that the price tends to appreciate. At the time of this publication, Polygon’s MVRV Z score was 0.19.
If the reading falls further, the bullish prediction mentioned above could be invalidated. On the contrary, a quick rebound in the metric could prevent MATIC from falling into another difficult stage.
Realistic or not, here is MATIC Market Cap in terms of ETH
Therefore, traders may need to keep an eye on the outcome before taking a position. At the same time, the metric reading could indicate that the token is undervalued.
If millions of addresses start accumulating MATIC at $0.73, then falling into a bearish cycle could be off the table.
Next: More Ethereum whales exit the market: are they giving up?
This is an automatic translation of our English version.
