The question looming over investors is whether MATIC has the potential to achieve a price milestone of $1 by the end of April.
According to Bixley’s analysis, potential price targets post-breakout include $1.2, $5.4, and an ambitious $55.
Polygon’s token, MATIC, experienced a significant downturn, dropping by 55% before showing signs of recovery on April 13. The subsequent price increase of 28% encountered resistance at $0.76, a level that previously served as support. Investors are now questioning whether the April 13 low marks the beginning of a new uptrend for MATIC or if the recovery was merely a response to oversold conditions.
According to IntoTheBlock’s on-chain data, the majority of Polygon addresses, approximately 81.45%, are currently not profitable. Conversely, only 14.3% of addresses bought MATIC at prices lower than its current value. This data suggests a prevailing reluctance among investors to sell at a loss, potentially indicating a bullish sentiment.
When a large portion of token holders are in profit, there is a heightened risk of profit-taking, which could lead to downward pressure on the price. Conversely, a willingness among investors to hold at a loss can provide support for the token’s price.
Examining transaction data reveals a relatively calm market environment, with a downtrend in activity observed since April 19. Additionally, there have been no significant transactions, indicating that MATIC whales have not intervened in the market. While a change in this pattern could spark a new rally for MATIC, there are currently no indications of increased interest.
The derivatives market also reflects this subdued sentiment, with both open interest and funding rate remaining stable since the April 13 low.
Analyst Criticism Sparks Doubt
In a tweet, Michaël van de Poppe expressed disappointment in Polygon’s performance, indicating a significant underperformance compared to market expectations. Van de Poppe’s comments have raised concerns among investors, prompting them to reassess their positions in MATIC amidst the ongoing market volatility.
Request 02 – $MATIC
Absolutely disgraceful chart on $MATIC.
Underperforming massively.
Might be interested if it drops another 30% to see whether it rotates from there, but I would suggest there are better opportunities out there. pic.twitter.com/5fRmRj1aOC
— Michaël van de Poppe (@CryptoMichNL) April 23, 2024
Despite the criticism, Van de Poppe hinted at a potential investment opportunity if MATIC were to experience a further drop of 30%. Such a decline could signal a price rotation and potentially attract investors seeking entry points. However, uncertainties persist regarding MATIC’s ability to rebound and reach the coveted $1 mark by the end of April.
The question looming over investors is whether MATIC has the potential to achieve a price milestone of $1 by the end of April. With market sentiment fluctuating and external factors influencing cryptocurrency prices, such as Bitcoin’s performance and regulatory developments, predicting MATIC’s future trajectory remains challenging.
Analyst Predicts Upward Momentum
Bixley, a prominent crypto analyst, recently shared an optimistic view on Polygon’s price trajectory. Pointing to a bullish trend line just above the current $0.7 level, Bixley suggests that breaking this trend line could pave the way for a notable price rally. Drawing parallels to Ethereum’s early days, the analyst anticipates a substantial upward move for MATIC if it successfully breaches the trend line.
According to Bixley’s analysis, potential price targets post-breakout include $1.2, $5.4, and an ambitious $55. These targets represent significant percentage increases, ranging from 70% to a staggering 7,800%, emphasizing the potential for substantial gains if the bullish scenario unfolds.
In contrast to Bixley’s optimism, another crypto analyst has raised concerns about a bearish signal on Polygon’s weekly chart. This analyst warns of a potential downturn in MATIC’s price by highlighting the formation of a death cross, which occurs when a short-term moving average crosses below a long-term moving average.
The chart presented by the bearish analyst suggests a possible 70% drop from the current level, potentially pushing MATIC below $0.2. This grim outlook raises apprehensions among investors who fear further losses if the bearish scenario materializes.
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