Introduction

Polygon's (MATIC) token holdings among significant investors have been on the rise, signaling growing confidence in its potential. Blockchain data from Santiment reveals that addresses holding between 100 million and 1 billion tokens now control 16.17% of the total supply as of May 23. This trend sets Polygon apart from many other altcoins.

Rising Confidence in MATIC

The increase in large investors' holdings reflects a strong belief in MATIC's long-term prospects, though it may influence short-term price movements. If these large holders, often referred to as whales, decide to sell a substantial portion of their tokens, it could lead to a price drop. Conversely, their continued accumulation suggests a potential price increase. As of now, MATIC is priced at $0.72, down by 25.48% over the past 90 days. Despite attempts to surpass the $0.80 resistance level in the past month, MATIC has faced rejections. The recent accumulation could, however, pave the way for a price rise.

Key Data Insights

Liquidity levels are another crucial factor. High liquidity zones between $0.75 and $0.78 on the MATIC chart indicate areas where the price might gravitate. This suggests that MATIC could soon move towards these levels. The Cumulative Liquidation Levels Delta (CLLD) metric further supports this prediction, highlighting the difference between long and short liquidations. Positive CLLD readings indicate more long liquidations, which can affect price movements and suggest a potential sharp recovery for MATIC.

Market Activity Indicators

The Mean Dollar Invested Age (MDIA) metric, which shows how long investors have held their tokens, also provides insights into market activity. A recent rise in the 90-day MDIA indicates increased transaction activity, which sometimes leads to selling pressure. The last similar trend saw MATIC's price rise from $0.71 to $1.27. While the current situation might differ, there is potential for the token's price to approach or exceed $1 in the medium term.

Conclusion

Polygon's growing holdings among large investors and various market indicators suggest a positive outlook for MATIC. Despite short-term price challenges, the increased confidence and strategic accumulation by significant investors indicate a promising future for the token. As market dynamics unfold, MATIC could see substantial growth, potentially reaching new price highs.