MATIC Price Prediction: Polygon Prepares for an Upward Assault Amid Robust On-chain Metrics

Last Updated July 23rd 2021
2 Min Read
  • Polygon recovery paused at $1.12, but bulls focus on $1.7.
    • The profit or losses ratio shows that MATIC is back in the buy zone.

    Polygon retested support at $1 following the recent freefall from price levels around $1.7. The smart contract token immediately lifted from the support, attacking the seller's congestion at $1.12. Due to the massive resistance at this level, the uptrend has taken a hiatus.

    In the meantime, MATIC is trading at $1.18 while the bulls' desire for another upswing becomes apparent. Despite the hurdle, the short-term technical levels and on-chain metrics hint at the uptrend carrying on in the near term.

    MATIC improving on-chain picture crucial for recovery

    The market value realized value (MVRV) by sentiment shows the profit or loss ratio of the holders of MATIC tokens moved over the last 30 days and analyzed against the price at which each token last moved.

    When the MVRV is low or below zero, it implies that holders are mainly at a loss and are unlikely to sell. In other words, the crypto asset is in the buy zone.

    On the other hand, a higher MVRV ratio infers that the holders are realizing profits and are likely to sell; thus, adding weight to the overhead pressure. With Polygon's profit or loss ratio of 0.89%, the token is expected to experience an uptick in demand as investors increase their stakes. Therefore, the path with the least resistance is upward.

    Polygon MVRV chart

     MATIC/USD santiment chart 062321

    The In/Out of the Money Around Price (IOMAP) by IntoTheBlock (ITB) shines a light on a massive buyer congestion zone between $1.1 and $1.14. Here, 823 addresses previously scooped up 660 million MATIC. If this support remains intact, Polygon will resume the uptrend because bulls will focus only on the recovery mission.

    Polygon IOMAP model

     MATIC/USD volume chart 062321

    The model reveals that the hurdles in Polygon's upward trajectory are relatively weak. In other words, with a slight push, MATIC may close the gap to $1.7 and perhaps trigger the next phase beyond $2.

    Subsequently, the technical outlook improves based on the Moving Average Convergence Divergence (MACD) indicator. It is essential to realize the buy signal flashed as the MACD line (blue) crossed above the signal line. Moreover, the uptrend will be validated further if the MACD crosses above the zero line.

    MATIC/USD four-hour chart

     MATIC/USD 4-hour chart 062321

    On the downside, closing the day under $1.2 could result in the overhead pressure surging. In other words, Polygon may be forced to revisit the support at $1. If push comes to shove, losses may extend to $0.75, the support in May.

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