Polygon long-term holders' resilience would pay off only when MATIC price notes a 30% rally

MATIC price joined the rest of the crypto market in registering declines over the last few days but went a little further after adding more to its losses in the last 24 hours. The investors are now being tested in their ability to refrain from panic selling as their rewards lie far away.

MATIC price sees more pressure

MATIC price trading at $0.7179 has lost close to 20% of its value in the last couple of days, bringing the altcoin to a key support level. The level marked at $0.7043 has remained unbroken for nearly nine months now, last observing a test in September 2022. 

MATIC/USD 1-day chart

Interestingly, in addition to the decline, the bearishness present in the market at the moment is enough to trigger selling at the hands of investors, especially those who lost 20% in a week. But MATIC holders have and are proving to be pretty tough.

These investors have been refraining from selling their MATIC, holding on to their supply for more than a year now. As a matter of fact, the investors that bought within the last month, too, are of the opinion of HODLing.

This is visible in the distribution of the entire MATIC circulating supply, as nearly 54.5% of it is sitting in the hands of HODLers or long-term holders.

MATIC supply distribution by time held

The rest of the 45.5% is mostly concentrated with the mid-term holders (Cruiser), who control 43% of all MATIC, leaving a little over 2% for the short-term holders who are more prone to selling.

But in order for these investors to be rewarded, MATIC would need to note an at least 30% rally and tag flip $0.9413 into a support floor. The reason behind this is the 4.72 billion MATIC worth over $3.3 billion that was purchased at this price point.

Although until that point, there are another 1.5 billion MATIC tokens awaiting profits, this chunk matters the most as it accounts for more than 70% of the entire supply.

MATIC GIOM

Thus, for investors to achieve such profitability, persistence is expected out of MATIC holders as it might take the altcoin a while to mark a more than 30% rally.