Polygon (MATIC) is gaining traction among HODLers, which could lead to a quicker-than-anticipated price rise.
The focus of Polygon investors is on growth and their behavior is a key driver for MATIC. The participation of investors in the network indicates that they are not currently interested in selling their tokens. On-chain analysis reveals that less than 1% of active addresses are in profit, suggesting that investors are not looking to lock in profits at the moment. Instead, almost 69% of active addresses are at breakeven and will likely push for higher prices to make a profit.
In addition, the transition of MATIC tokens from short-term to medium-term holders is a strong indication of trust. Medium-term holders tend to hold their assets for longer periods, indicating confidence in a future price increase. Since the beginning of the month, more than 410 million MATIC, worth over $275 million, have been moved to the addresses of medium-term holders.
This shows that Polygon token holders believe in the eventual rise of the price and anticipate higher profits. This confidence will play a crucial role in supporting the rally.
MATIC’s forecast suggests a recovery above $0.80. The price is currently bouncing back from the $0.65 support level and is close to breaking through the $0.70 resistance level. With investors eager for price gains, Polygon could aim for the $0.81 resistance if $0.70 becomes a support level.
Furthermore, the MACD indicator indicates strengthening bullish sentiment, indicating a potential trend reversal. Positive signals from the broader market could fuel a recovery of 20% or more.
However, if the $0.65 support level is broken and the price falls to $0.60, MATIC could be vulnerable to further declines, potentially reaching $0.53. In this case, the bullish scenario would be invalidated, leading to more losses.
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