📉 Polygon holds key level, but will MATIC fall to $0.61 in May?

📊 Polygon's Critical Levels and Potential Price Movements

According to IntoTheBlock, Polygon (MATIC) saw significant accumulation at $0.73, where 31,000 addresses purchased 216.94 million tokens. This level serves as a crucial point for MATIC's future price action.

📈 Support and Resistance Dynamics

Currently, 111,724 addresses are in profit (17.34% of supply), while 501,710 addresses (77.85%) are out of the money. The $0.73 region could act as either support or resistance depending on Polygon's next moves.

📉 Key Breakout and Breakdown Scenarios

A breakout above $0.73 could propel MATIC to $0.76, triggering a potential rally towards $0.83. Conversely, a breakdown could lead to a drop towards $0.61, aligning with entry points for most profitable holders.

🔄 Correlation with Ethereum and Bitcoin

Polygon (MATIC) has a strong correlation with Ethereum (ETH) at 0.93 and Bitcoin (BTC) at 0.87. The direction of ETH and BTC prices could influence MATIC's next move.

⚖️ On-Chain Metrics and Market Sentiment

On-chain data suggests that MATIC's MVRV Z Score is currently at 0.19, indicating a neutral sentiment. A decrease in this metric could impact the bullish scenario for MATIC, while an uptick might prevent a deeper correction.

🔍 Conclusion and Trader's Outlook

Traders should monitor key levels and on-chain metrics closely to gauge Polygon's future trajectory. Accumulation at $0.73 could mitigate downside risks, while a shift in market sentiment might alter the current outlook for MATIC.