It has been a relatively quiet period price promotion for Polygon (MATIC) the past weeks. On this day last month, MATIC was trading around its October low of $0.5154 before the inflow into the crypto market.
While the cryptocurrency has performed quite well and is up 82% since then, its rise has been largely overshadowed by the influx into Bitcoin and alternative cryptocurrencies like Solana, which has seen a 188% increase over the same period.
After briefly falling below $0.9 many times this week due to consolidations, MATIC has now cleared minor support at the $0.91 level. On-chain metrics such as the number of trades making a profit and open interest on futures contracts all point to continued upside for MATIC.
Polygon network statistics are exploding
Data from various market analysis platforms have shown spike in transactions on the polygon network. Cryptoquant puts the total number of transactions at the highest level since September. At the same time, data from IntoTheBlock shows that high transaction volume (transactions over $100,000) reached $636 million in the past 24 hours, an increase of more than 387% from yesterday. According to the analysis websiteThis is an increase of more than 3,800% compared to 30 days ago.
The volume of MATIC futures trading has also increased over the past week, as evidenced by the amount of open interest. Open interest on several MATIC futures markets has risen 120% this month, according to chart data from Coinalyze.
As the chart below shows, total open interest now stands at $260 million, up from $118 million on November 1. This dramatic increase shows that more traders are betting that the price of MATIC will rise significantly in the future.
Source: IntoTheBlock
MATIC currently has one of the highest percentages of addresses that bought at a profit around the current price. Data from IntoTheBlock’s ‘In/Out of the Money Around Price’ statistic shows that 71.23% of MATIC addresses who bought between $0.800122 and $1.08 are currently making a profit. In comparison, about 66.99% of Bitcoin addresses that bought around the current price are making a profit.
Source: IntoTheBlock
MATIC price reaches $2?
Technical analysis of MATIC’s price chart shows that the token could fetch over $1 or higher in the coming weeks. MATIC has already bounced off a support level around $0.86 more than four times this week, indicating that the bulls are not ready to give up momentum just yet.
MATIC is trading at $0.94 at the time of writing, and the next resistance is around a bearish order block that is proving resistant at $9.8. A break of this resistance could see MATIC break above $1, and a move above $1 would confirm the uptrend and open the door for a run towards $2 or higher.
According to Dave The Wave, Polygon is about to enter an uptrend against Bitcoin. The crypto analyst’s technical analysis points to a 200% increase from the current value to approximately 0.0000618 BTC, equivalent to $2.25.
MATIC bulls hold $0.9 support | Source: MATICUSDT on Tradingview.com
Featured image from CPO Magazine, chart from Tradingview.com