Polygon (MATIC) Price Remains Subdued Even as Active Addresses Hit Yearly High

full version at beincrypto

Polygon (MATIC) price did not seem to stick with its fellow cryptocurrencies in noting a solid recovery after it fell below $0.50.

However, the MATIC holders are still optimistic about the crypto asset’s eventual return, which is evident in their behavior.

Polygon Investors Act Positively

MATIC price recovery has gradually made its way back above $0.50 over the last few days. The altcoin is currently attempting to flip a crucial resistance into support, but it warrants support from investors, which the Polygon native token is receiving.

Participation, despite the consistent decline, sparked this week as the news of Polygon’s MATIC token migrating to POL received a timeline. The shift is expected to take place by September, which attracted investors’ attention.

Consequently, active addresses spiked to 4,400, the highest single-day participation in over a year. The investors conducting transactions on the network jumped to bank on the positive news, which is obvious considering the investors are deeply in loss.

MATIC Active Addresses. Source: S antiment

According to the historical in/out of the money indicator, less than 3% of the investors are in profit at the moment as they bought their assets below the current price. This is driving them to act in accordance with generating profits.

MATIC Historical In/Out of the Money. Source: Into TheBlock

Thus, their expectations of recovery do align with their actions.

MATIC Price Prediction: Slow Growth Ahead

MATIC price at $0.54 is attempting to flip $0.53 into support which help the altcoin recover the early July losses. A bounce off from this support will enable the Polygon native token to breach $0.60 and $0.64.

The latter has been a critical support floor for MATIC for a long time, and reclaiming it would translate into a rally. The altcoin would thus enter consolidation once again within $0.75 and $0.60.

MATIC Price Analysis. Source: TradingView

On the other hand, if $0.60 is not breached, the crypto asset would remain consolidated under $.60. Prolonged consolidation would invalidate the bullish thesis, leaving MATIC price vulnerable to a drawdown as well.