- The increase in investment age and other indicators suggested that most MATIC holders were choosing to HODL.
- Areas of high liquidity exist between $0.75 and $0.78, suggesting that the price may move towards these zones.
In contrast to the other groups, Polygon [MATIC] Addresses holding between 100 million and 1 billion tokens have had their balances added.
This is according to data provided by Santiment, an on-chain analytics platform that found that this cohort held 16.17% of the total supply as of May 23.
However, as of this writing, that percentage has increased to 17.30%.
The skeptics are out of town.
This increase indicates growing confidence in the token’s long-term potential, but it may also impact MATIC price volatility in the short term.
For example, if a whale (the term for the aforementioned group) decides to distribute a large portion of their holdings, it could cause the price of the associated token to fall.
therefore, Increase your balance This could drive the price of Polygon even higher. At the time of writing, the token was priced at $0.72, a drop of 25.48% over the past 90 days.
Source: Santiment
However, MATIC has been trying to trade higher for the past month, but all attempts to reach and surpass the $0.80 resistance have been rejected.
However, recent accumulations could potentially drive the Polygon native token higher. Regarding this possibility, AMBCrypto evaluated other indicators and metrics to see if they line up.
One of the indicators we looked at was liquidation levels. This indicator shows the price levels that a cryptocurrency can reach by highlighting areas of high liquidity.
At the time of writing, liquidity on the Polygon chart is high between $0.75 and $0.78. This magnetic zone indicates that the token may soon start moving in that direction.
The season of rest is coming
On the same chart, the Cumulative Liquidation Level Delta (CLLD) validated our prediction. For context, CLLD shows the difference between long and short liquidations.
A positive value of the indicator indicates more long liquidations than short liquidations, while a negative value of CLLD means more short liquidations than long liquidations.
Source: Hiblock
Apart from this, this indicator influences price fluctuations. At the time of writing, it was negative. As for Polygon’s price, this suggests that a sharp recovery is on the way, and late-bird short sellers trying to catch up on the dip may get hurt.
In addition, according to the mean age at which they invest (MDIA), most participants Leaning towards HODL MATIC. This metric shows the average time that all current Polygon addresses have held the token.
Polygon [MATIC] Price forecast 2024-2025
A decrease in the MDIA reading indicates increased trading activity. In some cases, this can lead to increased selling pressure. At the time of writing, the 90-day MDIA was increasing.
Source: Santiment
The last time the indicator moved this consistently, MATIC rose from $0.71 to $1.27. While the same situation may not occur this time around, the token’s price could approach or even surpass $1 in the medium term.
