Polygon (MATIC) Nosedives to 2022 Lows as 97% of Active Addresses Now Out of the Money

Things have gone from bad to worse for Polygon [MATIC] after the latest market correction. To be very specific, the price of the token plummeted to $0.43

MATIC hit a new low of $0.43 on 5 July, last seen during the bear market in July 2022. Despite the broader market sell-off, MATIC’s decline seemed singular.

Usually, some top 20 crypto holders experience profits, but IntoTheBlock revealed that 97% of MATIC’s active addresses were now at a loss. The remaining 3% broke even, indicating no active MATIC holders had unrealized gains.

After reaching a yearly high of $1.27 in March, MATIC holders largely experienced虧損, with the altcoin’s price大幅下跌 ever since. At press time, the cryptocurrency managed to recover slightly to trade at $0.46.

However, it faced a significant sell-wall at a minimum price of $0.49. In this zone, 550 addresses bought 20.47 million MATIC. So, if the price approached this level again, investors were likely to sell.

Should this happen, the token’s price might fall once more to hit $0.43. But, in case buying pressure increased, the bulls might try to break through this sell-wall.

If they succeeded, MATIC might attempt to retest $0.51 on the charts once again. But for now, that seemed like an unlikely possibility.

To determine whether MATIC had fallen back into a bear phase, AMBCrypto also checked the Market Value to Realized Value (MVRV) Long/Short Difference.

This metric highlighted the difference between the MVRV ratio of long-term holders and that of those newly accumulating a token.

When the metric was positive, the token was said to be in a bull phase, but if the reading was negative, it implied a bear phase.

For the project, the MVRV Long/Short Difference was -13.75%, indicating that MATIC was caught within the claws of the bears. For it to get out of the zone, the price had to hike by 13%.

If this happened, the token might attempt retesting previous highs. However, if it did not achieve this, the price might fall again.

This time, it could be capable of dropping as low as $0.40.

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