Polygon (MATIC) price does not show signs of solid recovery like other coins after falling below $0.50.
However, MATIC investors remain optimistic about the cryptocurrency's comeback, which is reflected in their behavior.
Polygon investors act proactively
MATIC price has gradually recovered back above the $0.50 level over the past few days. Currently, the altcoin is attempting to turn a key resistance level into support as it receives support from investors.
Participation picked up this week as a concrete timeline emerged for the conversion of Polygon’s MATIC token to POL, which is expected to take place in September, drawing investor attention.
As a result, the number of daily active addresses jumped to 4,400, the highest participation in over a year. Investors trading on the network increased to take advantage of this positive news. This is understandable given the heavy losses investors are experiencing.
According to the Historical in/out of the money index, currently less than 3% of investors are profitable because they bought assets below current prices. This motivates them to take action to generate profits.
Therefore, their expectations of recovery are consistent with their actions.
MATIC Price Prediction: Rising to Higher Highs
After a recovery over the past few days, MATIC price is now attempting to turn the $0.53 level into support. If successful, it will pave the way for another rally to higher levels at $0.60 and $0.64.
The latter level has been a key support floor for MATIC for a long time, and reclaiming it could trigger a strong rally.
On the other hand, if the price fails to break above $0.6, it could retest $0.53 and continue to consolidate thereafter. Prolonged consolidation would invalidate the bullish thesis, leaving MATIC vulnerable to further declines.