Polygon (MATIC) Price Forecast: Key Metrics to Watch for Potential Breakout

• Influenced by holder decisions and nearing break-even point, MATIC may move towards $1.
• Historical data using the MVRV ratio indicated a possible 31% hike for MATIC in the mid-term.
• Old tokens have refrained from moving – A sign that another correction might be unlikely.

Explore the potential surge in MATIC’s value as key metrics suggest a promising upward trajectory.

After the lows, come the highs

This, because many holders are holding at a price lower than the historical cost basis. Thus, instead of realizing losses, market participants may take advantage of the decline and accumulate. Most times, this results in a higher value. On 14 May, the MVRV ratio was -8.22%. However, the price of MATIC rose from that zone, pushing the metric to a much higher level.

MATIC diamond hands are not quitting

Another metric AMBCrypto analyzed was dormant circulation. If the dormant circulation spikes, it means that tokens that have moved in a long while are being transacted. In this case, the token might face selling pressure. However, a low reading of the metric seemed to indicate that long-term investors are sticking to HODLing, instead of liquidating. That was the case with MATIC. If sustained, the price of MATIC might not fall. Instead, it will consolidate for some time before a breakout eventually comes to pass.

Conclusion

From all indications, this on-chain volume in profit might begin to improve if MATIC validates the prediction above. However, should a change from the bullish bias appear, transactions in loss might continue to dominate.