The probability of Polygon (MATIC) experiencing both upward and downward movements is generally equal. However, there are indications that the token may lean towards a rally.
Are investors losing confidence in Polygon?
MATIC’s price has been range-bound in recent days due to the lack of clear market direction following the Bitcoin halving. Polygon holders themselves seem undecided, with active investors displaying a range of bullish to neutral sentiment, while potential investors lean bearish. This sentiment is reflected in the Mean Coin Age and Network Growth indicators.
The Mean Coin Age on-chain metric calculates the average number of days that circulating coins have remained at their current addresses, indicating the sentiment of long-term investors. An increasing Mean Coin Age suggests a preference for holding the asset, which is considered bullish during uptrends as it indicates lower willingness to sell and higher prices.
MATIC and Mean Coin Age metric. Source: Santiment
On the other hand, the Network Growth indicator evaluates the rate at which new addresses are joining the network, indicating whether the project is gaining or losing momentum in the market. Currently, this figure is at a 12-month low, indicating a lack of new investors.
Growth of the MATIC network. Source: Santiment
MATIC Forecast: Pay Attention to This Range
Polygon has been unable to break through the $0.76 resistance level and is currently trading around $0.71. This resistance has held for over a week, similar to the support at $0.64. In the past couple of days, the price has tested this support twice, thereby strengthening and consolidating the range.
Consequently, the altcoin may continue to move sideways between $0.76 and $0.61. However, there is the potential for either boundary to be breached.
4-hour chart MATIC/USDT. Source: TradingView
Ichimoku Cloud Provides Bullish Signals. This technical analysis tool offers insights into support, resistance, and price momentum.
If MATIC successfully breaks the $0.76 resistance level, it may test $0.81. In that case, the neutral-bearish scenario will be invalidated, paving the way for a recovery in the native Polygon token.
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