Polygon loyalists shed 400 million tokens as MATIC price fails to breach multi-month hurdle
- MATIC price trading at $0.677 did not even manage to tag the 50-day Exponential Moving Average (EMA).
- A rally to this resistance is crucial for about 432 million MATIC worth $292 million, which would witness profits once the altcoin hits $0.710.
- By the looks of it, mid-term holders are seeking to offset their losses as their supply has declined by more than 400 million in the last month.
MATIC price took a break from its price rise three days ago and has since been posting red candlesticks. The altcoin bounced off an important support level but failed to breach a crucial barrier, resulting in losses that investors are not willing to put up with.
MATIC price fails to impress
Following the sketchy recovery over the second half of June, MATIC price was seemingly inching closer to breaching the 50-day Exponential Moving Average (EMA) line marked at $0.742. But 72 hours ago, the rally stopped, causing the altcoin to drop to trade at $0.675 at the time of writing.
MATIC/USD 1-day chart
While the lack of a further rally may not generally seem like a big deal, the stalled rally impacts about 20k addresses that collectively hold more than 432 million MATIC worth $292 million at current prices. These tokens were purchased at an average price of $0.679 and would become completely profitable once the price action hits the upper limit of $0.712.
MATIC GIOM
If MATIC was to recover to this price level, the development could act as a jolt of bullishness in investors that have been putting off any potential loss by selling their holdings. The mid-term holders, considered to be one of the most loyal cohorts, hold on to their assets for more than a month and under a year.
For the past month, these investors have been offloading the supply they hold, which is being picked up by short-term holders. In all, mid-term holders have observed a decline of 400 million MATIC or 4% of the 7.1 billion tokens held by them.
MATIC supply distribution by age
Their decision to do so impacts the price negatively as the supply now sits in the hands of investors that hold for less than a month. Their volatility could trigger sudden sales, further minimizing the recovery.
Thus, at the moment, this selling needs to stop to provide MATIC price some room to recover, which would also allow the aforementioned 20k investors to enjoy some profits.
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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.
