- Despite massive price drops, LTHs’ confidence in MATIC remains high
- Buying pressure has also increased in recent days
Polygon [MATIC] investors have faced hardships in recent months, especially as the token’s value fell sharply on the charts. However, as the upgrade date from MATIC to POL approaches, there is hope that the bearish trend will change soon.
Therefore, let’s take a look at the current state of MATIC to find the right buying opportunities for investors to accumulate the token before it turns bullish after the upgrade.
MATIC’s dark days
CoinMarketCaps facts revealed that MATIC is struggling to raise its price. Within a single 30-day period, the token saw a 13% price drop. This got worse last week when MATIC’s value plummeted by more than 20%.
At the time of writing, MATIC was trading at $0.4244 with a market cap of over 44.2 billion, making it the 21st largest crypto.
The series of price corrections caused a majority of investors to suffer losses. According to InTheBlokcurrently only 2% of MATIC investors make a profit.
However, as the value of the token plummeted, long-term holders (addresses that held MATIC for more than 1 year) showed confidence in the token. This was the case when the number of LTHs rose in recent months – a sign that they were bullish on MATIC in the long term.
Source: IntoTheBlock
Is MATIC/POL ready for recovery?
A possible reason for this confidence could be the arrival of MATIC upgrade to POL. The major update is scheduled for September 4, making POL the native gas fuel for Polygon. The upgrade could fuel bullish sentiment in the market and in turn boost Polygon’s recovery from previous losses.
In fact, AMBCrypto’s analysis of Santiment’s data showed that investors have already started accumulating MATIC. Supply of the token on exchanges fell sharply on August 30, while supply outside exchanges increased. The fact that investors were buying was further evidenced by the increase in outflows in the currency markets.
In addition, whales have also stockpiled as the supply of prime addresses increased.
Source: Santiment
While this may be the right time to accumulate MATIC, AMBCrypto’s analysis of the token’s daily chart revealed that a drop below $0.419 would be an even better opportunity to stock up on MATIC.
The technical indicator MACD even showed a bearish advantage. It suggested that MATIC might as well drop to the above level.
Is your portfolio green? View the MATIC profit calculator
Finally, our look at the altcoin’s liquidation heatmap revealed a similar possibility of MATIC falling below $0.419.
However, if the bears get up early, it won’t be surprising to see MATIC quickly rise to $0.45 in the short term.
Source: Hyblock Capital
