The price of Polygon (MATIC) recorded a increase of more than 14% over the past six days. This despite the catastrophic conditions of the crypto market. Let’s see together if the uptrend is confirmed and if the token can reach the symbolic threshold of 1 dollar.
Will the $1 mark be reached soon?
At the time of writing, the value of the MATIC digital asset stands at $0.8723. It displays 7.91% daily earnings as the token climbed above the $0.84 mark. This move made MATIC the No. 1 spot on CoinMarketCap’s list of top cryptocurrencies. Investors having gotten some short-term relief.
MATIC/USDT Source : TradingView
MATIC price made numerous unsuccessful attempts throughout October to break above the key resistance level of $0.84.
Around October 13, the MATIC/USDT pair broke through the downtrend line that had formed in early October. As the price gained ground, the RSI (relative strength indicator) further broke out of the downtrend.
The next threshold to consider would be nearly $0.97, where more than 45,000 addresses hold 969 million MATICs. In the short term, the price of MATIC could know a huge bounce towards $0.94 if the bullish momentum continues. RSI is all about analyzing past market events. It allows to predict the future trends of digital or stock market assets.
Source : IntoTheBlock
With the RSI (Relative Strength Indicator) turning positive, the price action could turn in favor of bulls. On the other hand, if the bulls fail to hold prices above $0.85, the bearish momentum could take over and bring prices of the token back to $0.75.
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MATIC attracts more and more investors
MATIC gained daily active addresses (DAAs) during this bullish price action. The number of AADs increased by over 60% in just a few days. As a reminder, the DAA (Daily Active Address) correspond to the number of unique addresses that are active on a network. “Receivers” and “senders” are the two types of users taken into account.
The data ofIntoTheBlock also pointed out that over the past seven days, new addresses have 11.54% bonds while the active addresses registered a increase of 19.47%.
However, MATIC’s MVRV (market value/realized value) showed some signs of overheating, as the 7-day MVRV ratio started to reverse. stabiliser at higher levels. Nevertheless, with a 30-day MVRV still in an uptrend, the long-term trend seems intact.
The growth of the MATIC network has also seen a decent rise which could support price momentum in the near term. Nevertheless, the accumulation of whales remaining at low levels, it can be deduced that big fish stay cautious and have not started accumulating chips again.
Overall, while the metrics on MATIC’s on-chain indicate a healthy outlook for the coin, there is only a certain degree of recovery that can be expected when whale accumulation and large transactions are at the lower.
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