See More

Can Polygon (MATIC) Price Overcome Resistance With an 88% Increase in Active Addresses?

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Polygon price increase is facing the challenge of closing above $1.18, which MATIC failed back in April 2023.
  • Heavy buying is active in the market, with 59 million MATIC being purchased by holders.
  • Investor participation is increasing steadily, which will help MATIC anchor its recent growth.
  • promo

The Polygon (MATIC) price has been observed to increase consistently for the past month, which has propelled the altcoin by over 50%.

This increase might be noting some slowdown now as the MATIC price faces a crucial barrier that could reverse the bullish momentum if breached.

Polygon Finds Support as Active Addresses Rises

While many altcoins have managed to chart a rally by drafting off of other cryptocurrencies, MATIC has achieved the same with the help of support from its holders. These investors have been sustaining the bullish momentum by being active on the chain.

In fact, the average active addresses, i.e., those conducting transactions on the network, have shot up by 88% from 1,719 to 3,232. This is proof of increased traction in the market and investors’ confidence in the altcoin, exhibited by the high participation.

Polygon Active Addresses. Source: Santiment
Polygon Active Addresses. Source: Santiment

Secondly, the Polygon native token has noted a surge in buying at the hands of investors. The supply on exchange, which showcases the total MATIC on all exchanges, has dipped over the past week.

Investors have purchased nearly 59 million MATIC worth $70.2 million, indicating that the bullish sentiment will likely sustain for a while. This may help Polygon’s price navigate through the shift in momentum it might witness owing to the $1.18 resistance level.

Polygon Supply on Exchanges
Polygon Supply on Exchanges. Source: Santiment

MATIC Price Prediction: Rise Challenged

Polygon price on the 3-day chart observed a slight correction over the past 48 hours, slowing down the consistent increases. The altcoin encountered the $1.18 resistance level, which it last tested in April 2023.

By looking at the market condition and investors’ interest, as well as the aforementioned conditions, Polygon’s price looks in shape to push through $1.18 and continue the rally. Flipping this resistance into support would enable MATIC to tag $1.30 and mark a yearly high.

MATIC/USDT 3-day chart. Source: TradingView
MATIC/USDT 3-day chart. Source: TradingView

However, MATIC cannot be ruled immune to a breach of $1.18 this time, considering its failure to do so in April last year. Should this happen, Polygon’s price would likely drop to $1.05, registering a 10% correction.

If this support level is lost, the bullish thesis would be invalidated, and MATIC could lose the $1 support level.

Top crypto projects in the US | June 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
READ FULL BIO
Sponsored
Sponsored