Polygon's Path to Recovery: MATIC Eyes $1 Amid Investor Optimism

Polygon's Path to Recovery

MATIC price is looking to test $1 by the end of this week. Looking at investor behavior it seems possible. However, if this crucial support is lost, it could turn bearish.

Polygon Investors Turning Bullish?

MATIC price has historically exhibited a shift in tone following investors' behavior. With the altcoin currently attempting a breach of the ongoing downtrend, investors' bullishness will prove to be helpful to the altcoin.

This sentiment is also visible in the movement of tokens among addresses, primarily exchanges. As noted in the decline in active deposits, which calculates the movement of MATIC from investors' addresses to exchange addresses.

Polygon Active Deposits

Given Polygon's active deposits are declining, the possibility of price reversal is inclining.

This is further extended by the Market Value to Realized Value (MVRV) ratio. The MVRV ratio measures investor profit/loss. Polygon's 30-day MVRV at -5.9% signals losses, potentially prompting accumulation. Historically, -4% to -14% MVRV often precedes rallies, termed an opportunity zone for accumulation.

MATIC Price Prediction: $1 on the Cards

MATIC price, trading at $0.94 at the time of writing, has been stuck under a downtrend for nearly a month now. If the altcoin manages to close above the downtrend and successfully breach it, considering the above factors, the Polygon native could breach the $0.97 resistance.

However, if this breach fails, MATIC's price would fall through the $0.92 support level to test $0.88. Losing this support would result in the invalidation of the bullish thesis, pushing the Polygon token to $0.81.