Potential Losses Could Trigger Polygon (MATIC) Price Rise

Polygon (MATIC) price has been on a downward trend for the past month and a half, but it may start to rise in the future.

Changing market conditions and a recovery in demand for MATIC could help the recovery.

Polygon Investors Confused

Considering that the altcoin has already fallen into the oversold zone, MATIC price is likely to recover with the bears receding. The Relative Strength Index (RSI) is currently showing that the altcoin is oversold, suggesting a possible trend reversal in the near future.

The RSI, a momentum oscillator that measures the speed and change in price movements, dipped into the oversold zone.

This usually means that the asset has been sold off too aggressively and may rebound. Traders and analysts expect the downtrend to reverse as the selling pressure subsides, and often view such RSI levels as signals of potential buying opportunities.

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

MATIC RSI. Source: Trading View

Additionally, market data reveals a noteworthy statistic regarding MATIC holding addresses: currently, less than 8% of all MATIC holding addresses are profitable, which could have a significant impact on market movements.

If the majority of holders are in losses or have not yet made a profit, selling will tend to be suppressed. Investors will be less likely to sell at a loss, which could lead to price stabilization or even upward pressure as buyers perceive current price levels as attractive.

With fewer holders looking to realize gains or cut losses, there may also be less incentive to sell broadly. This phenomenon often leads to asset prices stabilizing, and in some cases, gradually recovering as purchasing interest increases.

MATIC break-even price.
MATIC breakeven price. Source: Inblock

MATIC Price Prediction: Breaking the Barriers

MATIC price is currently at $0.50 on the 3-day chart. The macro outlook is in line with the aforementioned recovery potential. The altcoin bounced back from $0.49 and is looking to break through $0.60, the next major barrier in the recovery.

If this happens, the altcoin may re-consolidate between $0.75 and $0.64 before a breakout leads to profits.

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

MATIC Price Analysis.
MATIC price analysis. Source: Trading View

On the other hand, if the breakout fails, it may remain within the $0.53 to $0.64 range, minimizing profit opportunities for investors. This may invalidate the bullish thesis and keep MATIC prices depressed until stronger bullish signs emerge.

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. While BeInCrypto strives to produce accurate and unbiased reports, market conditions may change without notice. Always conduct your own research and consult with an expert before making any financial decisions. Please note that our Terms of Use, Privacy Policy and Disclaimer have been updated.

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