If the 31,000 addresses holding Polygon tokens decide not to sell, MATIC might climb towards $0.83. According to IntoTheBlock, these addresses bought 216.94 million tokens at an average price of $0.73, making this a crucial level for MATIC.
Currently, 111,724 addresses, or 17.34% of the total supply, are in profit, while a staggering 501,710 addresses, representing 77.85%, are out of the money. Depending on the direction MATIC takes next, the $0.73 level could either act as support or resistance.
Analyzing MATIC’s Potential Movement & Price Levels & Market Correlations
A break above the $0.73 mark for MATIC could propel the cryptocurrency to $0.76, where 36.69 million tokens were accumulated. This might signal the beginning of a breakout towards $0.83.
Conversely, a breakdown could lead to a drop to $0.61, a level where many holders entered profitably. As of now, MATIC’s price has decreased by 4.37% in the last 24 hours.
Source: IntoTheBlock
Should this downward momentum persist, MATIC could aim for a rise between $0.83 and $0.89.
Besides participant actions, Ethereum (ETH) stands out as an altcoin capable of influencing MATIC’s direction. Our research indicates a strong correlation between Polygon and ETH, with a correlation coefficient of 0.93. Similarly, with Bitcoin (BTC), the correlation stands at 0.87.
Correlation coefficients range from -1 to +1. A reading near -1 indicates divergent price movements, while a value near 1 suggests that the cryptocurrencies move in tandem.
Hence, if ETH manages to avoid dropping below $3,000, MATIC might surge to $0.83. Conversely, if ETH’s price declines, MATIC could undergo another correction, possibly to $0.61.
Analyzing MATIC’s Potential Movement Using On-Chain Data
On-chain data from Santiment suggests that MATIC might enter a bearish phase if it experiences further corrections.
The MVRV Z Score, a metric indicating market sentiment, is crucial in this analysis. When this score falls below zero, it signals bearish dominance, making price increases challenging. Conversely, a positive reading suggests potential price appreciation. Currently, Polygon’s MVRV Z Score sits at 0.19.
Source: Santiment
Should this metric decline further, it could invalidate the bullish predictions mentioned earlier. Conversely, a rapid increase in the metric could prevent MATIC from entering a more challenging phase.
Traders are advised to monitor this metric closely before taking any significant positions. Additionally, a low reading on the metric might indicate that MATIC is undervalued.
If millions of addresses continue to accumulate MATIC at the $0.73 level, it could potentially prevent the token from entering a bear cycle.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
