Polygon (MATIC) has continued to experience a price increase over the past month, with the altcoin witnessing a surge of over 50%. If MATIC loses momentum, the trend could reverse from bullish to bearish.
Polygon Maintains Positive Outlook
Many altcoins have benefited from Bitcoin‘s rise and have reflected a positive outlook. During this period, MATIC’s price also increased, showing no signs of a negative trend. On the other hand, the Polygon network seems to continue its upward momentum actively.
While all this was happening, the average active addresses, meaning those transacting on the Polygon network, saw an 88% increase, rising from 1,719 to 3,232. This can be seen as evidence of the market’s and investors’ high engagement with Polygon and the growing interest in the altcoin, reflecting a climate of trust.
Furthermore, there has been an increase in purchasing activities by investors for Polygon’s native token. The amount of MATIC available across all exchanges, indicating the supply on exchanges, decreased over the past week.
Investors’ recent purchase of approximately 59 million MATIC, valued at $70.2 million, may suggest that the uptrend could continue during this period. This situation could be overcome with a strong break above the resistance level at $1.18.
MATIC Price Prediction
In the last 48 hours, there has been a slight correction in Polygon’s price, indicating a slowdown in the consistent upward movement. The altcoin recently encountered resistance at the $1.18 level reached in April 2023, and although it surpassed this level, it has since retreated back to it.
Potentially, turning this resistance into support could lead MATIC to reach $1.30 and subsequently its highest level of the year.
However, considering that MATIC did not achieve such a price movement in April of last year, it could be seen falling from the $1.18 price level this time. Such a scenario could lead to a potential 10% drop in Polygon’s price, causing a correction to $1.05.
If the mentioned support level is also lost, the bullish expectation could become invalid, and MATIC might fall back below the $1 support level.
