It has been a relatively quiet period of price action for Polygon (MATIC) over the past few weeks. On the same day last month, MATIC was trading around its October low of $0.5154 before the crypto market surged.
Although the cryptocurrency has performed quite well and is up 82% since then, its growth has been mostly driven by flows into alternative cryptocurrencies like Bitcoin and Solana, which have seen a 188% increase over the same period.
After falling below $0.9 several times this week due to consolidation, MATIC has now hit minor support at the $0.91 level. On-chain metrics such as transaction count addresses make profits and open interest on futures contracts all point to a continued upside for MATIC.
Polygon Network Matrix Explode
Data from various market analytics platforms has shown an increase in transactions on the Polygon network. CryptoQuant puts the total transaction count at its highest level since September. Additionally, data from IntoTheBlock shows that large transaction volume (transactions over $100,000) reached $636 million in the last 24 hours, an increase of more than 387% from yesterday. According to the analytics website, this is an increase of more than 3,800% compared to 30 days ago.
MATIC futures trading volume has also increased over the past week, as shown by the volume of open interest. According to chart data from Coinify, open interest on various MATIC futures markets has increased by 120% this month.
As shown in the chart below, total open interest has increased from $118 million on November 1 to $260 million now. This dramatic increase shows that more traders are betting on a significant increase in the price of TIC in the future.
MATIC currently has the highest percentage of addresses that bought around the current price in profit. Data from IntoTheBlock’s “In/Out of the Money Around Price” metric shows that 71.23% of MATIC addresses purchased between $0.800122 and $1.08 are currently making profits. In comparison, about 66.99% of Bitcoin addresses purchased around the current price are making profits.
MATIC price will reach $2?
Technical analysis of MATIC’s price chart shows that the token’s price could rise to $1 or higher in the coming weeks. MATIC has already bounced off the $0.86 support level more than four times this week, showing that bulls are still unwilling to give up the momentum.
MATIC is trading at $0.94 at the time of writing, and the next resistance is around the bearish order block proving resistant at $9.8. Breaking this resistance could send MATIC above $1, and a move above $1 would confirm the uptrend and open the door to a move to $2 or higher.
According to Dave the Wave, Polygon is set to enter an uptrend against Bitcoin. Technical analysis from the crypto analyst points to a 200% increase from its current price, which is approximately 0.0000618 BTC, which is equivalent to $2.25.
MATIC bulls find support at $0.9 Source: MATICUSDT on tradingview.com
Featured image from CPO Magazine, chart from Tradingview.com