MATIC bear phase confirmed! Will $0.40 be the next price for the altcoin?

• MATIC is struggling to get back on its feet after nearly all of its shareholders lost profits
• The MVRV indicator revealed that the token was in a bearish phase and would need a 13% increase to exit it

Things have gone from bad to worse for Polygon [MATIC] after the latest market correction. To be very precise, the token price dropped to $0.43 on July 5th.

To put things into perspective, the last time MATIC reached this level was in July 2022. At the time, the cryptocurrency market was in a full-blown bear market.

MATIC’s recent decline has been in line with the broader market. However, on one singular front, it seemed to be all alone.

Now, one would normally expect most or at least some of the top 20 cryptocurrency holders to be in some form of profit at some point. But is that really the case with MATIC?

The polygon finally leaves the “green earth”

Well, the bad news is that MATIC can’t claim the same. According to In the Block97% of the project’s active addresses are now out of the money. In plain English, this means they are holding the token at a loss.

The remaining 3% is not in profit, but they are at break-even, meaning that no active holder of MATIC has unrealized gains.

In March, the price of Polygon’s native token hit a yearly high of $1.27, putting many holders in the money. Since then, however, it’s been all down for the altcoin.

At press time, the cryptocurrency has managed to move back to $0.46. However, it has yet to hit a massive sell-off at a low of $0.49.

Source: IntoTheBlock

In this area, 550 addresses have purchased 20.47 million MATIC. So, if the price approaches this level, there is a high probability that investors will be willing to sell.

If this were the case, the value of the token could drop back to $0.43. However, if in the case increases purchasing pressureBulls may try to break this wall.

If this is successful, MATIC could retest $0.51 on the charts. However, this is unlikely to happen at the moment.

Are bears here to stay?

AMBCrypto also assessed whether MATIC has relapsed into the bearish phase or not. To do so, we checked the Long/Short difference between Market Value and Realized Value (MVRV).

This metric calculates the difference between the MVRV ratio of long-term holders and that of first-time holders.

When the metric is positive, it means that the token is in a bullish phase. However, if the reading is negative, it implies that it is in a bearish phase.

For the project, the MVRV Long/Short difference was -13.75%, indicating that MATIC has been caught in the claws of bears. To exit the zone, the price must increase by 13%.

Source: Santiment

Light Polygon [MATIC] Price forecast 2024-2025

If this happens, the token may attempt to retest previous highs. However, if it fails, the price may drop again.

This time it could drop to $0.40.

Source