Polygon (MATIC) Hodlers Trapped in a Tug-of-War as Only 2% Remain in Profit

Concentration of tokens held by whales usually stands out among the key sentiments affecting the MATIC market dynamics.

Polygon (MATIC) price has seen a sharp drop in profitability with only 2% of its holders currently in the green, according to data from IntoTheBlock. This marks the lowest percentage recorded, indicating that a majority of the investors are likely holding at a loss until the market conditions stabilize.

The present MATIC price range between $0.36 and $0.40 has many holders trapped in a difficult spot. The price levels have seen around 7 billion tokens held by 8.83K addresses, further explaining the pull-and-pull faced by most holders.

IntoTheBlock’s analysis showed that the present price range is crucial for MATIC, especially considering the large volume of tokens concentrated within.

As per the analysis, a majority of the tokens, nearly 74.79% of the total supply, are concentrated in the addresses of whales. This ownership structure can lead to high price volatility.

Moreover, a recent analysis by AMBCrypto on the Coinglass liquidation map data showed that MATIC has a spike of liquidations between the addressed range of 0.37$-0.40$. This suggests that the prices may range in this region for sometime before a significant movement.

For retail traders, this high concentration will raise red flags over liquidity and potential wild price swings.

Also, a majority of the tokens are concentrated in the lower price range, which could impact the asset’s ability to rally quickly from the present levels.