According to IntoTheBlock, Polygon (MATIC) was at a point where 31,000 addresses bought 216.94 million tokens at an average price of $0.73. This situation was a break-even point for these investors but could also serve as a critical level for MATIC. At the time of writing, 111,724 addresses representing 17.34% of the total supply were in profit.
Expectations for a Rise in MATIC
On the other hand, 501,710 addresses, which is about 77.85%, were exhausted. Depending on where the Polygon native token moves next, the $0.73 region could become support or resistance. A breakout above $0.73 could move MATIC to $0.76, where 36.69 million tokens have been accumulated. If this is the case, the cryptocurrency’s price could start to rise to $0.83.
However, a possible breakout could trigger a drop to $0.61, where most profit holders entered. At the time of writing, MATIC’s price had fallen by 4.37% in the last 24 hours. If the token maintains this momentum, MATIC’s next move could be an increase between $0.83 and $0.89. Besides investors, Ethereum (ETH) is an altcoin that could influence the token’s next direction. According to the data, Polygon’s correlation with ETH was 0.93, and with Bitcoin (BTC), this rate was 0.87. Correlation readings vary between -1 and +1.
Data from Santiment on MATIC
Data close to -1 indicates a disparity in prices, while data close to 1 indicates that the values of cryptocurrencies move almost in the same direction. Therefore, if ETH stays above $3,000, MATIC could rise to $0.83. However, if the price of the second-largest cryptocurrency falls, MATIC’s price could start a new correction towards $0.61.
In terms of correction, on-chain data obtained from Santiment indicated that another decline could send the token into a downtrend. This data was obtained after checking the Market Value to Realized Value (MVRV) Z-Score. When the MVRV Z-Score is below zero, it indicates that the token is facing a downtrend and it may be difficult for the price to increase. However, when the metric rises into the positive region, it indicates that the price is likely to gain value. At the time of writing, Polygon’s MVRV Z Score was 0.19.
