Polygon (MATIC) Fails to Escape the Curse of Consolidation – What’s Next

5 months ago 3

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Polygon (MATIC) price is struggling to break above a critical resistance that has left the altcoin stuck within two limits.

To make this worse, the investors are not too keen on HODLing either, as they are likely opting to offset their losses.

Polygon Investors Are Pulling Back?

MATIC price could be taking a dip, owing to the asset’s holders’ actions. In the last few days, the lack of increase in price has resulted in the investors noting a sell sign flashing across the network.

This is visible in the price daily active addresses (DAA) divergence. This is a phenomenon where the price of a cryptocurrency and the number of its daily active addresses move in opposite directions. This divergence can indicate potential overvaluation or undervaluation of the asset.

In the case of MATIC though, both price and participation are declining. This results in the network flashing a sell signal which the retail investors could follow.

As is the whales are following this path evident in their recent dumping. The addresses holding between 1 million and 10 million MATIC tokens have sold off more than 23 million MATIC. This $17 million worth of supply sold in the span of four days has brought their holdings to 913 million MATIC.

This group of investors is known to be highly influential on the price as their actions lead to the price. When these whales buy, the price tends to go up, and when they sell, MATIC takes a dip.

Thus, their selling could likely translate to a decline in the altcoin’s value.

MATIC Price Prediction: Decline May Continue

MATIC price has been consolidated for the past month within the limits of $0.75 and $0.64. These two price points have been tested multiple times as both resistance and support, respectively.

The aforementioned conditions highlight similar potential outcome since the investors are not particularly bullish. The altcoin could drop back to $0.64 from the current trading price of $0.69.

Should MATIC price break out or break down, the neutral bearish thesis would be invalidated. A breakout would send the altcoin rising towards $0.80, while a fall below $0.64 will result in a drop to $0.60.

The post Polygon (MATIC) Fails to Escape the Curse of Consolidation – What’s Next appeared first on BeInCrypto.

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