- Increased investment age and other indicators suggested that most MATIC holders were choosing to HODL.
- A high liquidity area existed between $0.75 and $0.78, indicating that the price may move into this area.
Unlike other groups, Polygon (MATIC) addresses holding 100 million to 1 billion tokens were added to the balance.
This is according to data provided by Santiment. According to the on-chain analytics platform, the supply held by this cohort was 16.17% on May 23.
However, at the time of this writing, that percentage has increased to 17.30%.
Skeptics are no longer in town
This increase signals increased confidence in the long-term potential of the token. However, it may have an impact on MATIC’s price action in the short term.
For example, if whales (the term for the group mentioned) decide to distribute a significant portion of their holdings, the prices of the tokens involved may fall.
Therefore, an increase in balance is likely to push Polygon’s price higher. At press time, the token price was $0.72. This is a decrease of 25.48% over the last 90 days.
Source: Santiment
However, MATIC has attempted to trade higher over the past month. However, all attempts to reach and surpass the $0.80 resistance were rejected.
However, it may be possible for the Polygon native token to rise due to recent accumulation. Regarding this potential, AMBCrypto evaluated other metrics and indicators to see if they agreed.
One of the indicators we looked at was liquidation levels. This indicator highlights areas of high liquidity, showing the price levels a cryptocurrency can reach.
At the time of this writing, high liquidity on the polygon chart existed 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 approaching
On the same plot, Cumulative Liquidation Level Delta (CLLD) validates the prediction. Depending on the context, CLLD shows the difference between long-term and short-term liquidation.
A positive reading of the indicator means there are more buy liquidations than short sells. On the other hand, if CLLD reads as a negative number, it means there are more sell liquidations than buys.
Source: Hiblock
Apart from this, indicators also influence price action. At the time of reporting, it was negative. For Polygon price, this indicates that a sharp recovery may be near and late shorts trying to catch the dip could be punished.
Additionally, MDIA (Median Dollar Investment Age) indicates that most participants are leaning toward HODLing MATIC. This indicator shows the average time that all Polygon addresses currently hold tokens.
Read Polygon (MATIC) price forecast for 2024-2025
A decreasing MDIA reading indicates increasing trading activity. Sometimes this can add to selling pressure. At press time, the 90-day MDIA had increased.
Source: Santiment
Last time, the metric showed consistent movement, with MATIC rising from $0.71 to $1.27. It may not be the same this time, but the token price could approach or exceed $1 in the medium term.