- MATIC price has been hovering between the $2.21 and $1.76 barriers for roughly ten days.
- A daily close above the $2.21 level will trigger a volatile move to $4 after a 100% ascent.
- If Polygon creates a lower low below $1.76, it will invalidate the bullish thesis.
MATIC price saw a considerable boost in buying pressure on October 28 that shattered two crucial barriers but failed to continue this upswing. As a result, Polygon has retraced and is awaiting another injection of volatility to slice through the hindering hurdles. This move will propel the Layer 2 token to new highs.
MATIC price in search for volatility
MATIC price set up three equal highs at $1.76 and three higher highs since June 7. Connecting these swing points using trend lines reveals the formation of an ascending triangle. This technical formation forecasts a 150% to $4.32, obtained by adding the distance between the first swing high and swing low to the breakout point at $1.76.
MATIC price breached through the said barrier on October 28 and rallied 24% in a single day. However, Polygon bulls lost their charm, undoing almost all of the gains over nine days. Now, MATIC price is coiling up just above the $1.76 support floor, suggesting a volatile move is on its way.
To trigger this upswing, MATIC price needs to have enough fuel to slice through the $2.03 and $2.21 resistance barriers. Doing so will allow Polygon to kick-start a nearly 100% upswing that propels MATIC price to a new all-time high at $4.32.
MATIC/UDT 1-day chart
If the consolidation that is currently occurring results in an increased selling pressure that pushes MATIC price to shatter through $1.76 and produce a daily close below it, it will invalidate the ascending triangle’s bullish thesis.
This move will likely trigger panic selling, further knocking MATIC price down to the subsequent support floor at $1.56.
Will Polygon’s [MATIC] epic rise fetch an ATH?
After the November lull, things look good for Polygon’s native token, MATIC. While top cryptocurrencies looked for a decisive direction, MATIC went on to score a six-month high record as it rose by 34.94% over the past week. What’s driving the growth?
Earlier this year, MATIC underwent a parabolic rally. It may sooon mimic a similar movement once again. The 15th-largest crypto-asset successfully broke the long-standing resistance level on 3rd December.
At the time of writing, the crypto-asset was exchanging hands at $2.28 after registering daily gains of 9.05%. However, the latest price action coincides with a major development.
The rapid addition of new protocols in the Polygon network is yet another major factor that’s driving not just MATIC’s price but also its on-chain activity.
MATIC hits 6-month high; What’s next?
Afte days of retracement, the overall technicals look optimistic as the green candles made a swift recovery this week. So far, the rising volume is cushioning the uptrend. The MACD also aligned with bulls while the daily moving averages 50 [Pink] and 100 [Blue] supported the price candles from a market downtrend.
The closing green bars of Awesome Oscillator [AO] also exhibited growing bullish momentum in the coin market. The volatility, as depicted by the diverging Bollinger Bands [BB], has also amplified following the latest price action which has pushed the Relative Strength Index [RSI] towards the overbought zone. MATIC buyers are dominating the scene.
The above charts clearly depict that odds are in favor of the token.
How long till the ATH breach?
The crypto-analytic platform, IntotheBlock’s IOMAP chart, well over 99% of all addresses holding MATIC are in profits. Meaning there are no substantial supply barriers ahead which could boost the token in breaching its previously established peak.
ITB also noted,
“Increasing institutional support, the rapid expansion of the ecosystem, and the focus on ZK scaling solutions are just some of the reasons why Polygon token MATIC is soaring. And on-chain data backs these fundamentals, as our actionable signals are showing a bullish momentum.”
According to crypto analyst Ali Martinez, as long as MATIC manages to hold its fort above the crucial $1.82-$1.89 zone, “there is a good chance price will advance higher.”
Polygon MATIC Reaches $2 Following 25% Price Rally
While Matic reaches a new local high, almost 100% of its holders are now holding in profit
According to data provided by IntoTheBlock, the IOMP indicator shows that almost every single holder of Polygon tokens remains in profit with 99.22% of positions staying open in profit.
Matic’s price action
But the idyll on the market could not last any longer, and Matic faced a rapid retrace by losing almost 9% of its value in a matter of minutes. With a strong retrace on the market, 3% of holders that were previously in profit now remain “in the money” or are breaking even.
Matic is currently moving in the local uptrend that began on Nov. 19 and lasting until now. More globally, Matic has been moving in the rangebound since it is the most recent ATH reached on May 18.
The In/Out of money indicator shows the percentage and volume of positions that are trading at a profit, loss or breakeven. A large number of positions in profit is being considered a bullish indicator, while the losing majority is a defective sign for an asset.
The indicator is also being used to determine resistance and support zones according to the investor’s price action. According to IOMP, the current possible support zone remains in the $1.83-$1.89 zone with an average price of $1.86.
The strong resistance zone that was confirmed by the price action was also located close to the value of $2.22.
Polygon’s [MATIC] impressive feat with revenues hitting ATH
Polygon has had great days with green daily candles and increasing revenues hitting new ATHs in the network revenues. Other metrics are also increasing for the Polygon blockchain, and it seems to have good times in terms of growth and revenue. All of these factors show a promising future for this blockchain, and its native token, MATIC that can hit new ATHs in the price chart soon.
Twitter account @RaphaelSignal posted a new analysis about the Polygon network describing the details of metrics on the blockchain. The most important metric is the network revenues that have had new ATHs in the past few days. According to the analysis, the network had its revenue propped 16.6%, recording the third week of double digits growth. A new ATH of $93.8K revenue per day is recorded for MATIC. It shows 11.86% growth. It’s the first time that revenues have passed $90K in Polygon.
Another important metric for analyzing the stats and growth of networks like Polygon is the active addresses. The growth in this metric continues slightly in the network, recording the 4th consecutive week with more than 300K active addresses. Daily active users or DAU has recorded growth, too. With a 10.4% growth, there we about 340K active addresses per day in the network.
Comparing the metrics of the Polygon network to Ethereum is interesting. Polygon is somehow becoming an alternative for developers and users of smart contracts, resulting in various migrations from Ethereum. Compared to Ethereum, Polygon has 64% daily active users. It was about 50% in the past month.
The number of transactions on the Polygon network isn’t rising significantly. It’s somehow ranging, and there can be many factors resulting in this kind of movement in the tx chart. The network recorded a 10.39% jump in the last week and is currently at the top of the range and the second-highest number in the last two months.
Another promising metric for the Polygon network is net bridge inflows that more than doubled in the last week recording $212mm. Besides, the bridge outflows recorded the third consecutive week of decreasing.
Raphael believes Polygon is becoming a reliable solution in the gaming sector. Pegaxy is one of the new games launching in this network resulting in more active users. Besides, NFT sales are helping the network grow. We can expect more growth for Polygon as more games and NFT marketplaces are joining the community bringing more users with them.