Polygon, which had secured its position once in the top 15 has just slipped beyond 20 at the press time. However, it does not indicate the bearish trend or the diminished strength of the altcoin. As the MATIC price appears to be preparing to go beyond ATH amid the current bull run. And hence, every dip may be the ‘buy at the dip’ for the asset as the targets for Polygon price may range as high as $3.5.
Despite the fact that the MATIC price is plotting to go high, yet the short term bearish trend is still valid. After attempting a couple of times to breach through $2.2 levels, the asset faced rejection and plummeted miserably. Yet the asset possesses extreme bullish momentum that could uplift the price above the immediate resistance levels.
After getting rejected for the second time at $2.2, the asset declined to lower levels. Currently, the price is trending within a falling wedge that could be a massive bullish indicator. The price dropped notably but bounced back hitting the support levels close to $1.70. And hence providing yet another opportunity for the traders to jump in. However, the asset could yet again hit the resistance levels and drop close to support levels before a final flip towards the $2 target.
On the flip side, if MATIC price fails to keep up the bullish momentum, then the lower support levels at $1.5. However, it is more unlikely as Polygon appears to be self-assured of the upcoming rally. The uptrend may range the price high not only beyond ATH and but also discover new highs above $4 too.
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.