Polygon (MATIC) price is recovering from a bearish month that saw the altcoin drop below $1. In order to turn the $1 level into support again, the altcoin needs to overcome several resistances, however, investor sentiment sounds bullish at the current time.
Bullish Signals for Polygon (MATIC)
Historically, MATIC’s price is sensitive to investor behavior. Now that the token is trying to break out of a downtrend, bullish investor sentiment could prove beneficial for the altcoin.
These sentiments are also visible in the movement of coins between addresses. First of all, we are talking about exchanges. This can be seen in the decline in the active deposits metric, which calculates the movement of MATIC from investor addresses to exchange addresses. Moreover, given that Polygon’s active deposits are declining, the likelihood of a price reversal is growing.
An additional argument is the coin’s Market Value to Realized Value Ratio (MVRV). The MVRV ratio measures an investor’s profit/loss. A 30-day MVRV of -5.9% signals losses, potentially encouraging accumulation. Historically, MVRV values of -4% to -14% often precede a rally and are considered an opportunity zone for accumulation. Thus, the price of MATIC is likely to trigger a recovery after investors accumulate the asset.
MATIC forecast: $1 Mark On The Radar
MATIC has been in a downward trend for almost a month. If the altcoin manages to close above this trend and successfully break through it, taking into account the above factors, then Polygon will be able to overcome the $0.97 resistance level.
This will allow the price to recapture the $1.00 barrier, which will ultimately allow the cryptocurrency to overcome the $1.02 resistance level. However, as soon as it is broken, we can talk about a successful exit from the downtrend. However, if this bullish breakout fails, MATIC will fall below the $0.92 support and reach $0.88. The loss of this level of support will lead to the abandonment of the bullish scenario and the fall of the token to $0.81.
About Polygon (MATIC)
Polygon (MATIC) is a project designed to solve the scalability problems that are currently noticeable in most Ethereum-based cryptocurrencies. Here, these problems are planned to be eliminated by using side chains. The consequence of increased scalability is a reduction in commission fees and an increase in the speed of payments.
MATIC Network offers a solution in the form of Plasma sidechains, which sit on top of the Ethereum blockchain and make transactions faster and more secure. In addition, the creators consider user experience to be a key aspect. Moreover, they have already developed several libraries and tools for browsers and smartphones, such as Dagger and WalletConnect.
