Polygon holds key level, but will MATIC fall to $0.61 in May?
  • The potential increase could allow over 17.34% of holders to retain their profits.
  • A decrease in the MVRV Z-score would negate the bias, possibly increasing MATIC to $0.61.

According to IntoTheBlock, polygon [MATIC] At the time, 31,000 addresses had purchased 216.94 million tokens at an average price of $0.73.

This was a break-even point for these holders, but it could also act as a break-even point at the same time. critical level For Matic. At the time of writing, 111,724 addresses were profitable, representing 17.34% of the total supply.

Meanwhile, 501,710 addresses (an astonishing 77.85%) were underfunded. Depending on where the Polygon native token moves, the $0.73 area could then become support or resistance.

This group holds the key

Above $0.73, MATIC could reach $0.76, where 36.69 million tokens have been accumulated. In this case, the cryptocurrency price could start to breakout to $0.83.

However, a breakdown could trigger a sharp drop to $0.61, where most profitable holders had an entry. At the time of writing, MATIC price had fallen 4.37% in the past 24 hours.

Polygon shows potential to rise to $0.83

Source: Into the Block

If the token maintains this momentum, MATIC’s next move could be an increase between $0.83 and $0.89.

Apart from participants, Ethereum [ETH] is one of the altcoins that could influence the next direction of the token.

According to our findings, the correlation between Polygon and ETH is 0.93.In the case of Bitcoin [BTC], it was 0.87. Correlation measurements range from -1 to +1.

If the measured value is close to -1, it means a divergence in prices. On the other hand, a value close to 1 indicates that the value of the cryptocurrency is moving in roughly 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, the price of MATIC could start correcting again to $0.61.

Will I succeed or fail this time?

For fixes, on-chain data from Santiment Indicated If the token falls further, it could enter a bearish phase.

AMBCrypto got this inference after checking the market value versus realized value (MVRV) Z-score.

If the MVRV Z-score is lower than zero, it means that the token is dealing with bearish dominance, which could make it difficult for the price to rise.

However, if the indicator rises in positive territory, it suggests that prices have a tendency to rise. At the time of writing, his MVRV Z-score on Polygon was 0.19.

Polygon's price is at risk of falling

Source: Santiment

If the readings decline further, the above bullish prediction could be invalidated. On the contrary, a rapid rise in the indicator may prevent MATIC from entering another difficult phase.

Whether it’s realistic or not, MATIC’s market cap in ETH terms is:

Therefore, traders may need to pay attention to the results before taking a position. At the same time, the metric reading may indicate that the token is undervalued.

If millions of addresses start accumulating MATIC at $0.73, we could be in for a bearish cycle.

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