Polygon (MATIC) Price Consolidation Persists as Investors Pull Back

full version at beincrypto

Polygon (MATIC) price will likely witness slow or no recovery over the next few trading sessions.

The reason behind this is the investors’ behavior, as their dejection pushes them away from participation.

Polygon Investors Lose Motivation

MATIC price is facing the consequences of the recent lack of growth. Currently, only a little over 8% of all MATIC holders are experiencing profits, while the majority are still waiting for gains.

This significant disparity in profit realization is impacting investor sentiment and confidence in the market. As a result, there is a noticeable decline in participation, even amidst recent price spikes.

MATIC Supply Break-Even. Source: Into TheBlock

The prevailing skepticism among holders is contributing to this trend, with many investors choosing to stay on the sidelines rather than actively investing.

This bearishness and reduced participation suggest a broader lack of confidence in the market. Investors are hesitant to engage, which affects overall liquidity and trading volumes. The uncertainty is creating a cautious environment where significant price movements are less likely to occur.

Consequently, the price of MATIC may struggle to break out of its consolidation phase. Without increased participation and a shift in sentiment towards a more optimistic outlook, the likelihood of a significant upward movement remains low. For MATIC to see a breakout, it will need stronger investor confidence and higher engagement from its holder base.

MATIC Active Addresses. Source: Santiment

MATIC Price Prediction: Seeing Ahead, Not Above

MATIC price at $0.522 is continuing its movement between $0.546 and $0.491. This range has kept the altcoin consolidated for more than three weeks now, which could continue.

The aforementioned factors are contributors to this, and if their behavior becomes any more bearish, the support at $0.491 could be lost. This would result in further losses for Polygon investors.

MATIC Price Analysis. Source: TradingView

However, if the resistance at $0.54 is breached, there is a good chance that the recovery could restart. For the same, $0.54 would need to be secured as a support floor to push the altcoin to $0.60 and above.