What’s been happening with MATIC lately? The ups and downs in its price have caught people’s attention, and there’s a lot to unpack – from what’s driving these fluctuations to how investors are feeling about it all.
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The token dropped to $0.85, but then recovered after the Polygon team offloaded a few tokens. Prices could soar up to $0.96 if the bullish momentum holds. According to a recent update from Spot On Chain, the Polygon fund (MATIC) sent 9 million tokens to Binance (BNB). According to chain tracking platforms, this was the second time in the last five days that Polygon unloaded MATIC. The first transaction involved a hefty $13.2 million transfer to the same exchange.
Usually, when such large transfers occur, the cryptocurrency price drops due to the pressure from sellers. So, the swift recovery of MATIC suggests that the buying pressure outpaced the sellers’ actions. If that’s the case, then it means that some other things were happening in the chain.
This prompted checking out Polygon’s volume. Using Santiment data, a spike was noticed. At the time of writing, this indicator surged to 361.49 million. Coupled with the price action, the increasing volume could serve as a force of direction.
Polygon’s price hovering around $0.88 meant the value was on the upswing again. So, the increasing volume and price hike could trigger another leap.
In this scenario, MATIC could tack on another 10% growth. If that’s the case, we might witness MATIC trading around $0.96 in the coming days. But if the volume spikes alongside the price, the bullish trend could weaken. In this situation, MATIC’s price might take a dip, with its price reaching $0.80 in a likely scenario.
Long-Term Outlook for MATIC
Beyond the short-term gains, the overall number of MATIC holders also matters. As of January 14th, the count stood at a whopping 63.71 million holders.
But yesterday, February 14, this number increased to 67.47 million. Such growth suggests that more market participants are convinced that the token will perform well in the long run.
However, the weighted sentiment stood at -0.688. Weighted Sentiment employs a unique social volume to gauge the project’s perception. Hence, a negative value indicates that market players believe MATIC’s upward trend may not last long – at least according to the discussions and comments.
Looking ahead, MATIC’s price might soar past $0.90. If the Polygon Foundation keeps sending more transfers to exchanges, the price could dip. However, a decrease in exchange inflow might boost the chances of MATIC hitting the $1 mark.
Related: Solana Surges Past Polygon: The Rise of NFTs on Solana
MATIC May Hit $1.60 in 2024
Currently, the price has stabilized, lounging between the $0.7 support and the current resistance, trading at $0.87. Expect a consolidation period before any breakthroughs. If the price starts an upward trend, overcoming the $1 mark will be crucial.
Moreover, it’ll take some synchronized bullish efforts to breach the resistance at $1.50. This particular resistance level has been a stubborn barrier, untouched since April 2022. Successfully overcoming this resistance would signal a shift in market sentiment, potentially attracting more investors and traders who were previously hesitant to enter the market. It would validate the strength of the bullish momentum and instill confidence in MATIC’s long-term growth prospects.
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Furthermore, breaching this level could trigger a cascade of positive momentum, propelling MATIC’s price even higher. The $1.60 mark becomes not just a speculative target but a realistic possibility, setting the stage for further bullish advances.
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