MATIC’s bear phase confirmed! Is $0.40 next for the altcoin?
  • MATIC struggles to find footing after nearly all shareholders lose profits
  • The MVRV indicator revealed that the token is in a bear market and needs a 13% rally to get out of it.

The situation in Polygon is getting worse [MATIC] After the most recent market correction, specifically, the token’s price plummeted to $0.43 on July 5th.

To put this in perspective, the last time MATIC hit these levels was in July 2022. At the time, the cryptocurrency market was in a full-blown bear market.

MATIC’s recent decline is in line with the broader market decline, but individually, MATIC appears to be on its own.

Now, generally speaking, one would expect that most, or at least some, of the holders of the top 20 cryptocurrencies have made some sort of profit at some point. But is that really the case with MATIC?

Polygon finally leaves “Greenland”

Unfortunately, the MATIC cannot boast the same thing. Into the Block97% of the project’s active addresses are currently out of the money. Simply put, this means they are holding their tokens at a loss.

The remaining 3% is not profitable but is breaking even, meaning that MATIC active holders have no unrealized gains.

In March, the price of Polygon’s native token hit a yearly high of $1.27, causing many holders to take profits, but the altcoin has been on a downward trend since then.

At the time of writing, the cryptocurrency has managed to rally to $0.46 but is yet to face a significant sell-off at the $0.49 minimum.

Polygon pricing issue

Source: IntoTheBlock

In this zone, 550 addresses purchased 20.47 million MATIC, so investors are more likely to sell if the price approaches this level.

If this is the case, the token’s value could fall to $0.43 again, although bulls may try to breach this barrier if buying pressure intensifies.

If that proves successful, MATIC could retest $0.51 on the charts, but for the time being, that seems unlikely.

Are the bears here to stay?

Additionally, AMBCrypto assessed whether MATIC had reverted to a bear market. To do this, we checked the long/short difference between market value and realized value (MVRV).

This metric calculates the difference between the MVRV ratio of long-term holders and the MVRV ratio of new token holders.

When the index is positive, it means the token is in a bull market, whereas when the index is negative, it means it is in a bear market.

In this project, the MVRV long/short differential was -13.75%. show MATIC is caught in the claws of the bears, and to break out of this zone, the price needs to rise by 13%.

Polygon prices fall

Source: Santiment

Polygon [MATIC] Price forecast 2024-2025

If this happens, the token may attempt to retest its previous highs, but if this is not achieved, the price may fall again.

This time, it could fall to $0.40.


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