CoinDesk Report:
Polygon[MATIC] is struggling to find solid ground after nearly all holders are in the red. The MVRV indicator suggests the token is firmly in bear territory, needing a 13% increase to break free.
Following recent market adjustments, Polygon[MATIC] has seen its situation deteriorate. Specifically, on July 5, the token plummeted to $0.43.
Long-term, MATIC hasn’t seen these levels since July 2022, during a broader crypto bear market.
MATIC’s recent declines mirror the broader market. However, in a unique aspect, it appears to be standing alone.
Typically, it’s expected that most or at least some holders in the top 20 cryptocurrencies will have realized profits at some point. Is MATIC living up to this expectation?
Polygon finally exits the “green zone.”
Well, the bad news is MATIC can’t boast the same. According to IntoTheBlock, 97% of the project’s active addresses currently hold no funds, indicating they’re holding tokens at a loss.
The remaining 3% are not profitable but are at break-even, meaning no active MATIC holder has unrealized gains.
In March this year, Polygon’s native token reached an annual high of $1.27, which saw many holders in profit. However, altcoin prices have been declining since then.
At the time of writing, the cryptocurrency has retraced to $0.46. However, it has yet to face significant sell walls at the $0.49 minimum price.
In this range, 5.47 million MATIC were bought by 550 addresses. Therefore, investors are likely to be willing to sell if the price approaches this level.
If this occurs, the token’s value could again drop to $0.43. However, if buying pressure increases, bulls may attempt to break through this barrier.
If successful, MATIC could retest $0.51 on the charts. However, currently, this possibility seems unlikely.
Will the bear stay?
Additionally, AMBCrypto assessed whether MATIC has indeed entered a bear market phase. To do so, we examined the difference between market value and realized value (MVRV).
This metric calculates the difference between the MVRV ratio of long-term holders and the MVRR ratio of new accumulating token holders.
A positive reading indicates the token is in a bull market phase. However, a negative reading suggests a bear market phase.
For this project, the MVRV long/short delta is -13.75%, indicating MATIC is caught in the bear’s claws. To exit this zone, prices must rise by 13%.
Read Polygon’s[MATIC] price predictions for 2024-2025.
Should this occur, the token may attempt to retest previous highs. However, failure to do so could see prices drop again.
This time, it could fall to $0.40.