- Polygon (MATIC) has seen a significant increase in the supply held by large investors, indicating potential bullish momentum.
- High liquidity zones between $0.75 and $0.78 suggest a possible upward price movement for MATIC.
- On-chain data reveals that addresses holding 100 million to 1 billion MATIC tokens have increased their balances, showcasing growing confidence in the token.
Polygon (MATIC) is experiencing a surge in investor confidence, with large holders accumulating more tokens, potentially driving the price higher.
Increased Investor Confidence in Polygon (MATIC)
Recent on-chain data from Santiment indicates that the supply of Polygon (MATIC) held by addresses with 100 million to 1 billion tokens has increased from 16.17% on May 23 to 17.30% at present. This rise in holdings among large investors, often referred to as ‘whales,’ suggests a growing confidence in the long-term potential of MATIC.
Impact on MATIC’s Price Action
The accumulation of MATIC by large holders could have a significant impact on the token’s price action. If these whales decide to distribute a large portion of their holdings, it could lead to a price decrease. However, the current increase in balance indicates a potential for Polygon’s price to rise. At the time of writing, MATIC is trading at $0.72, reflecting a 25.48% decline over the past 90 days.
Liquidity and Price Movement
High liquidity zones between $0.75 and $0.78 on the Polygon chart suggest that the token might soon move towards these levels. This magnetic zone indicates a potential upward price movement, supported by the Cumulative Liquidation Levels Delta (CLLD) indicator. The CLLD, which shows the difference between long and short liquidations, currently has a negative reading. This suggests that a sharp recovery could be imminent, with late shorts potentially facing losses.
Mean Dollar Invested Age (MDIA) and HODLing Behavior
The Mean Dollar Invested Age (MDIA) metric indicates that most MATIC holders are opting to HODL their tokens. The MDIA shows the average time all current Polygon addresses have held their tokens. A decrease in MDIA suggests increasing transaction activity, which can sometimes lead to selling pressure. However, the 90-day MDIA has been on the rise, indicating that holders are maintaining their positions.
Conclusion
The recent accumulation of MATIC by large investors, coupled with high liquidity zones and positive on-chain metrics, suggests a potential bullish outlook for Polygon. While short-term price fluctuations are possible, the long-term confidence in MATIC remains strong. Investors should keep an eye on key indicators and market developments to make informed decisions.
