Polygon investors likely to hold on to their 5 billion MATIC until MATIC price hits $1
- MATIC price is currently sideways bound but is finding the strength to recover to $1.
- The faith of Polygon investors is visible in the increasing concentration of mid-term holders, who will HODL until profits are guaranteed.
- Nearly half of the circulating supply bought between the current price and $1 will become profitable if MATIC rallies by 15%.
MATIC price over the month has lost its $1 mark, which in the case of this altcoin is a key psychological support level. For a little over the last two weeks, investors have been awaiting a climb back to this level so that their supply no longer bears losses.
MATIC price could recover
MATIC price is currently trading at $0.87, and to return to the $1 mark, the cryptocurrency needs to chart a 15% rally. One of the most crucial factors in enabling this recovery is the investors sitting patiently and waiting for their opportunity to claim profits.
MATIC/USD 1-day chart
This is evident in the rise in “Cruisers” or mid-term hodlers. This cohort comprises investors that have been holding their MATIC for more than a month. At the start of the month, these addresses controlled about 70% of the entire circulating supply, whereas, at the moment, they hold over 75% of the supply.
MATIC supply distribution by time held
Their conviction is also imbued into the current short-term holders since they have seen losses over the past three weeks. As observed in the chart below, all the transactions conducted on-chain have cumulatively led to network-wide losses for the entire month of May. Thus naturally, holders will only offload once they know their selling will bear them profits.
 [01.52.17, 23 May, 2023]-638203839766371272.png)
MATIC network-wide losses
The close possibility of large-scale profits for MATIC holders would come only when the altcoin has climbed back up to the $1 mark. This is because about 83k investors purchased a little over 5.1 billion MATIC between the current price of $0.87 and $1.
Of this 5.1 billion MATIC, 4.5 billion were bought between $0.91 and $1 and another 650 million MATIC was purchased at $0.88 and $0.91. These tokens represent more than half the 9.2 billion MATIC circulating supply.
MATIC GIOM
Therefore, as long as these investors keep themselves from selling, MATIC price has a good chance of making it to $1. The Relative Strength Index (RSI) is also climbing out of the bearish zone, nearing the neutral line at 50.0, and once it breaches the same, an uptick in price can be expected too.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
