Polygon’s MATIC has shown significant growth over the past week. Initially, the altcoin got off to a slow start, but has since picked up speed and successfully surpassed key resistance points. The recent rise in MATIC’s value trapped bearish traders by breaking past the vital resistance line at $0.9. Nevertheless, with the number of investors looking to exit with profits, there is increasing concern about a possible pullback. This situation puts the spotlight on bullish traders to see if they can maintain the current uptrend.
60,000 addresses are preparing for a sale
Over the past 24 hours, MATIC’s price has staged a robust rally, crossing the crucial $0.9 mark. Still, the rise was short-lived as investors made money, leading to a slight decline in MATIC’s share price. Coinciding with this event, data from Coinglass revealed that short positions worth more than $1.4 million were liquidated as the price surge countered bearish bets.
Nevertheless, if MATIC price tries to rise above $0.9 again, there could be more bearish momentum. According to IntoTheBlock, approximately 63,500 addresses are currently unprofitable in the $0.87 to $0.95 price range. Interestingly, since MATIC last traded within this range in May, this suggests that these holders may have acquired their MATIC during this period, indicating a potential sell-off zone into which they could attempt to break even if MATIC reaches that zone again. This could spell the end of their patience as MATIC’s volatility has been relatively lower this year.
Furthermore, whales exhibit profit-driven behavior by buying during price declines and selling at peak values. Following the increase in MATIC’s price to $0.85 on November 9, there was a noticeable drop in the volume of large transactions from a high of $357 million.
With whale trading peaking again, reaching $252 million, this suggests that another failed attempt by MATIC to get above the $0.9 threshold could lead to significant liquidations among these large investors. This can impact bulls in maintaining upward momentum.
What’s next for the MATIC Prize?
MATIC’s rise gained momentum after surging past $0.85, although it is currently facing resistance near $0.93. This suggests that sellers are active around $0.9. At the time of writing, MATIC’s stock is trading at $0.89, up more than 5.6% in the last 24 hours.
Bulls are being tested around the $0.82 level. Should the price maintain momentum near that level and stage a recovery, it could indicate strength for a fresh rise past the $0.93 resistance. A successful break above this level could confirm a double bottom pattern for MATIC price, with a bullish target at $0.976.
On the bearish side, a decline below $0.8 could lead to a pullback to the $0.68 level. A significant decline to these levels would indicate that MATIC could remain within the consolidated range of $0.6 for some time.