Polygon (MATIC), a notable player among the top 20 cryptocurrencies, has not mirrored the recent market uptrend seen in many altcoins. Despite an attempt to breach the $0.55 mark on July 16, MATIC’s price retracted to $0.52 before a modest recovery to $0.5451.
What Are Investors Experiencing?
Following a peak in March, MATIC’s price dropped to $0.48 last week. The Global In/Out of the Money (GIOM) indicator revealed crucial insights into investor positions. According to GIOM, until July 9, no investors were in profit. The price rebound has only benefitted those holding tokens obtained between $0.0032 and $0.52, which comprises 5% of the total investor base.
This situation underscores the struggle of most Polygon investors, as the majority remain either in loss or at a breakeven point. The network’s current price levels highlight the limited profitability among its investors.
Can MATIC Price Recover?
Daily price analysis shows that MATIC tested a support level of $0.47 on July 5, but surged to $0.54 a week later. However, the Money Flow Index (MFI) indicates insufficient MATIC-oriented liquidity, complicating efforts to reach the $0.57 level. MFI, which tracks capital flows into and out of cryptocurrencies, remains below the neutral line, suggesting waning bullish sentiment.
Key Investor Implications
Investors should consider the following:
- MATIC’s struggle to surpass $0.55 indicates resistance at this level.
- Positive price movement requires substantial liquidity, as evidenced by the MFI.
- Bearish trends could push the price below $0.50, with potential to drop to $0.47.
- A successful close above $0.53 could catalyze a move towards $0.64.
These points suggest monitoring liquidity and market sentiment for informed trading decisions.
Should the prevailing market outlook persist, MATIC may dip under $0.50, possibly revisiting $0.47. Conversely, a close above $0.53 could negate the bearish forecast and propel the price to $0.64.
