Polygon (MATIC) Price Analysis: What’s Driving The Current Surge?

Polygon (MATIC) Price Analysis: What’s Driving The Current Surge?

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The MATIC Price has seen a surge of over 15%, reaching $0.85 in the morning, as bulls look to push the token beyond the crucial $1 mark. 

MATIC is currently trading at $0.83 and could continue to push higher if it crosses the resistance levels at $0.850 and $0.880. 

MATIC Experiencing Remarkable Surge 

MATIC has been experiencing a remarkable surge in its price and market capitalization over the past few weeks. The token has now reached prices not seen since last July, with its market capitalization growing by 54% in just three weeks, according to data from Santiment. The data provider also noted that MATIC’s recent upward trajectory has received considerable support from key wallets that hold a substantial amount of MATIC tokens. 

In a post on X, Santiment noted that the wallets in question held between 100,000 and 10 million MATIC. The increase in accumulation by these whale wallets led to increased buying pressure on MATIC. As a result, the price would inevitably increase, combined with the prevailing bullish sentiment in the market. Since the 28th of October, the wallets have accumulated 42.88 MATIC tokens worth nearly $40 million.

 “With #altcoin milestones continuing to fire off, #Polygon has steadily risen back to $0.80 and increased its market cap by +54% in just 3 weeks. And in the past 2 weeks, the key wallets holding 100K-10M $MATIC have supported this rise by accumulating.”

Additionally, the daily count of whale transactions valued above $100,000 has also registered a steady increase since the beginning of the month. On the 8th of November, 161 MATIC transactions worth over $100,000 were completed.

MATIC Price Action 

MATIC is currently trading at $0.82, as you can see in the chart below. After forming a base just above $0.65, the MATIC price registered a strong increase, breaking past $0.70 and moving into a positive zone, like its counterparts, Bitcoin (BTC) and Ethereum (ETH). Late on Thursday, MATIC registered a sharp drop, going below $0.80 and dropping to $0.78. However, with support around the $0.77 mark, the price was able to make a strong recovery, surging past $0.80, reaching a high of $0.85, and testing the resistance at $0.850.

However, following this price movement, we saw a sharp decline as it fell to its current level of $0.82. The price also spiked below the 50% Fib retracement level of the upward wave from the $0.6952 swing low to the $0.8588 high. However, the bulls remained active above the $0.82 level. MATIC is also forming a key bullish trend line, with support near $0.775 on the 4-hour chart. The trend line sits near the 61.8% Fib retracement level of the upward wave from the $0.6952 swing low to the $0.8588 high.

MATIC faces immediate resistance at the $0.850 level, with the first major resistance sitting at $0.880. If the price breaks above this level, we could see MATIC continue its upward momentum. The next major resistance can be found around the $0.920 level. Any move above this level could see MATIC move towards $0.980 or the coveted $1 mark.

Downside Correction?

If MATIC fails to move past the resistance at $0.850, we could see a downside correction, with immediate support at $0.80. However, the main support sits at $0.775, and any break below this level could see MATIC drop towards $0.720. The next major support for MATIC sits at $0.70.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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