2 Reasons Why Polygon (MATIC) Could Enter a Bull Rally

Polygon (MATIC) price is awaiting strong bullish clues that could break the altcoin out of the consolidation it is currently stuck in.

Given that altcoins are among the least profitable assets, investors are likely to seek price appreciation to lock in profits.

Polygon investors hint at accumulation

If only investors act appropriately, MATIC price could break through the $0.74 barrier. As long as these MATIC holders refrain from selling, consolidation could continue and accumulation could enable upside.

This is an expected outcome for the price of MATIC, which is observing increasing buying pressure. The supply held on the exchange has decreased by 20 million MATIC over the past three days. Although this supply is not large compared to other values ​​and market capitalizations of altcoins, this is evidence of investor sentiment.

In the past, such purchases have been followed by short-term price spikes. If MATIC price witnesses the same result this time, the consolidation may be invalidated.

MATIC replacement supply. sauce: Santimento

Less than 34% of MATIC’s total circulating supply is profitable, which is relatively unusual. Despite the recent correction, at least 50% of the majority of the crypto supply has profited.

This suggests that Polygon’s investors are likely desperate for profits and may therefore be unable to sell their holdings. MATIC has significant room for growth, so the bullish development could continue.

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

MATIC supply is profitable.
MATIC supply is profitable. sauce: Santimento

MATIC Price Prediction: Get back $0.80

MATIC price consolidates between $0.74 and $0.64. This range has not been broken at either end for the past three weeks. Since mid-April, the Polygon native token has made multiple attempts to breach the cap, acting as resistance.

Now, altcoins are trying to do the same thing. A boost from Polygon investor accumulation could push MATIC past his $0.74 mark and towards $0.80. A successful reversal of the $0.81 resistance will trigger a recovery rally.

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

MATIC price analysis.
MATIC price analysis. sauce: TradingView

On the other hand, if the breach fails, MATIC price will remain range bound and could fall to $0.64. Losing this support could cause the altcoin to fall below $0.60, invalidating the bullish outlook.

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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