An examination of Polygon (MATIC) reveals that 31,000 addresses acquired the cryptocurrency at an average price of $0.73, totaling 216.94 million tokens. This price point is considered crucial for MATIC as recent trading suggests a potential shift to $0.76. Depending on market movements, there is a possibility of a decline leading to a drop to $0.61.

According to IntoTheBlock, 17.34% of the total MATIC supply represented by 111,724 addresses is currently in profit. Conversely, 77.85% of addresses, numbering 501,710, are at a loss. The $0.73 region could serve as a support or resistance level for Polygon, with a breakout potentially leading to a price increase to $0.76. Conversely, a breakdown could result in a decline to $0.61, where many traders entered the market.

The correlation between MATIC and Ethereum (ETH) stands at 0.93, indicating a strong relationship between the two cryptocurrencies. Similarly, the correlation with Bitcoin (BTC) is 0.87. Investors are advised to monitor ETH's price movements as it could influence MATIC's direction. Data from Santiment suggests that a rise in ETH above $3,000 could push MATIC's price to $0.83, while a decrease in ETH's price could trigger a correction towards $0.61.

On-chain data from Santiment, specifically the Market Value to Realized Value (MVRV) Z-Score, indicates that a negative reading could signal a downtrend for MATIC. Conversely, a positive reading suggests a potential price increase. At the time of writing, Polygon's MVRV Z Score was 0.19, indicating a slight positive sentiment.