Polygon (MATIC) Price Outlook: Interpreting Investor Signals

Polygon (MATIC) price may struggle to find direction given the various cues it receives from the market and investors.

There is equal potential for upside and downside, but MATIC leans toward the former for this reason.

Are Polygon investors losing confidence?

MATIC price has been range-bound for the past few days, which is due to the lack of directional bias after Bitcoin’s halving. Altcoins are also facing a similar situation from investors.

MATIC holders are showing mixed signals, with active investors being bullish to neutral while potential investors are bearish. This is evident from the average age of the coins and the growth of the network.

Average Coin Age calculates the average age of all coins in circulation. This provides insight into the level of market activity and potential movement of coins based on the age of the coins being traded.

The slope of this indicator suggests a hold among investors and is considered bullish during an uptrend. This indicates that investors are less inclined to sell their holdings, which is supporting the price rise.

MATIC Average age of the coin. sauce: Santimento

Network growth, on the other hand, is calculated by the rate at which new addresses are formed on the network. This measures whether a project is losing or gaining momentum within the market.

Read more: How to buy Polygon (MATIC) and everything you need to know

This metric is at a 12-month low at the time of writing, effectively suggesting a lack of new investors on the network.

Growth of the MATIC network.
Growth of the MATIC network. sauce: Santimento

Therefore, combining the two could result in a bearish-neutral outcome for MATIC price.

MATIC Price Prediction: Keep an eye on this range

MATIC price is currently trading at $0.71, failing to break out of the resistance level marked at $0.76. This barrier has been in place for more than a week for him and the same goes for the $0.64 support. In the past few days, the latter has undergone two tests, strengthening and consolidating its range.

Simply put, the altcoin is likely to continue moving sideways between $0.76 and $0.61 for the most part. However, it is possible to violate either restriction.

MATIC/USDT 4-hour chart.
MATIC/USDT 4-hour chart. sauce: TradingView

At first glance, Ichimoku Cloud, a technical analysis tool that provides insight into support, resistance, and momentum, is bullish. The cloud is below the candlestick and suggests an increase in price.

Read more: Polygon (MATIC) Price Prediction 2024/2025/2030

If MATIC price follows this cue and breaks through the $0.76 resistance, the price could move higher and test $0.81. This could invalidate the bearish neutral thesis and give the Polygon native token room to recover.

Disclaimer

In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although BeInCrypto strives for accurate and unbiased reporting, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.

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