Polygon’s MATIC has exhibited significant growth over the past week. Initially off to a slow start, the altcoin has since picked up speed, successfully surpassing key resistance points. The recent uptick in MATIC’s value trapped bearish traders by pushing past the vital resistance mark of $0.9. Nonetheless, with the increase in investors looking to exit on profits, there is rising concern about a possible retraction. This situation puts the spotlight on bullish traders to see if they can maintain the current upward trend.
60K Addresses Prepare For A Selloff
In the past 24 hours, the price of MATIC experienced a robust rally, crossing the crucial $0.9 mark. Yet, the surge was short-lived due to investors cashing in, which induced a slight dip in MATIC’s price. Coinciding with this event, data from Coinglass revealed that short positions amounting to over $1.4 million were liquidated when the price surge countered the bearish bets.
Nonetheless, if MATIC’s price attempts a climb above $0.9 once more, it may encounter increased bearish momentum. According to IntoTheBlock, approximately 63,500 addresses are currently unprofitable in the $0.87 to $0.95 price bracket. Interestingly, since MATIC last traded in this range in May, it suggests that these holders may have acquired their MATIC during this interval, signaling a potential sell-off zone where they might seek to break even if MATIC reaches that zone again. This could signal the end of their patience as MATIC’s volatility has relatively been lower this year.
Furthermore, whales are showing profit-driven behavior by buying in during price dips and selling at peak values. Following the increase in MATIC’s price to $0.85 on November 9, there was a noticeable decrease in the volume of large transactions from a high of $357 million.
Now, as whale transaction activity spikes anew, reaching $252 million, it suggests that another unsuccessful attempt by MATIC to break above the $0.9 threshold could lead to significant liquidations among these large investors. This can impact bulls in maintaining an upward momentum.
What’s Next For MATIC Price?
MATIC’s surge gained momentum after soaring past the $0.85 mark, although it is currently encountering resistance near $0.93. This suggests that sellers are active near $0.9. As of writing, MATIC’s price trades at $0.89, surging over 5.6% in the last 24 hours.
Bulls are going to get tested near the $0.82 level. Should the price hold momentum near that level and trigger a rebound, it could signal the strength for another surge past the $0.93 resistance. A successful break above this level could confirm a double bottom pattern for the MATIC price, setting a bullish target of $0.976.
On the bearish side, a decline below $0.8 might lead to a fallback to the $0.68 level. A significant pullback to these levels would indicate that MATIC may remain within the consolidated range of $0.6 for some time.
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