The signs to identify a possible 33% rally in MATIC’s price
MATIC price seems to be recuperating quicker than many altcoins after the recent flash crash. The downswing found a stable support level capable of absorbing the incoming selling pressure and reversing the trend. Therefore, market participants can expect Polygon to embark on a quick run-up to significant hurdles.
MATIC price has rallied roughly 9% after the recent 27% crash to $1.33. This downswing was a result of the Bitcoin price crashing with the financial markets. However, Polygon like many altcoins is quick in its recovery and shows signs of continuing this uptrend.
The immediate resistance barrier at $1.78 is where the upside for Polygon will be capped, signaling a total gain of 33% from $1.33.
MATIC/USD | Source: Tradingview
Supporting this bullish outlook for Polygon is the 30-day Market Value to Realized Value (MVRV) model. This on-chain index currently hovers at -13.8%, suggesting that the short-term holders of MATIC are panic selling at a loss.
However, any move below -10% is considered as an opportunity zone, since long-term holders tend to accumulate assets here since there is little-to-no risk of a sell-off. Therefore, this index forecasts the probability of Polygon moving higher, aligning with the technical indications.
MVRV Ratio | Source: Santiment
While these two outlooks are bullish, the supply on exchanges metric seals the bullish deal. The number of MATIC tokens held on centralized exchanges has dropped from 1.23 billion to 1.15 billion over the past 2 weeks.
This 6.5% downtrend in assets held on exchanges indicates that investors are not looking to sell anytime soon, thereby removing a massive amount of sell-side pressure and solidifying the bullish outlook for MATIC price.
Supply on exchanges | Source:
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