Amid the joyful mood in the crypto market, when bitcoin reached a new multi-year high, the influence of this atmosphere is also noticeable on the price of Polygon (MATIC), which has increased by more than 57% over the past month.

Altcoin penetrates the general optimism and strives for growth, despite potential threats from Polygon investors. When considering the possibility of their imminent sale to MATIC.

Polygon traders are switching to selling.

Over the past month, the price of Polygon has increased significantly, reaching $1.12 at the time of writing. Unlike bitcoin, February turned out to be a challenge for MATIC, but thanks to the support of investors, it was able to continue its growth, reaching an 11-month high.

Nevertheless, these same investors may provoke a drop in prices, since, apparently, they intend to start selling. The total token supply on exchanges has increased by 100 million MATIC over the past 12 days, reaching 1.2 billion.

An increase in the stock offer usually indicates the intention of investors to sell an asset or take profits during a period of growth. Given that bullish sentiment is very volatile, MATIC holders are likely to want to lock in profits before a possible correction.

The greatest threat to the growth of the Polygon price is posed by short-term traders, known for their penchant for quick purchase and sale operations. These are those who hold the token for less than a month.

The concentration of these traders on MATIC has doubled in the last two weeks, and at the moment they control coins worth about 782 million dollars. If they decide to sell for profit, the altcoin may face serious obstacles on its way to growth and may even see a decline on the daily charts.

The forecast for MATIC is closely related to the dynamics of bitcoin.

The MATIC price is close to the critical resistance level of $1.18. This level has historically served as a reliable support and may be the starting point for further growth above $1.20. However, taking into account the objections from investors, growth against the background of bitcoin's highs may be favorable for it.

On Monday, BTC reached a new annual high of $68,359. If the rally continues, then MATIC may follow bitcoin, as they have a strong positive correlation (0.9). This means that MATIC can follow the BTC trend if there is a dynamic supported by the supply and demand of the asset.

If the MATIC price continues to rise, then it can turn the $1.18 resistance level into support. However, if it fails to overcome this barrier, it may return to $1.05. Closing the daily candle below this level may make the altcoin vulnerable to falling to $0.95, which negates the prospects for a bullish trend.