Polygon’s native token, MATIC, has seen its value escalate by more than 50% over the last month, riding the wave of the overall positive sentiment in the cryptocurrency market. Despite this impressive growth, there is a possibility for a shift to a bearish trend if the momentum were to fade.
Momentum Builds for Polygon
The rise in Bitcoin has generally been advantageous for many altcoins, and MATIC is among those reflecting similar gains. The Polygon network itself has been exhibiting robust upward dynamics, maintaining its positive trend without signs of decline. In parallel, active addresses on the network, which indicate transactional activities, have soared by 88%, suggesting heightened market engagement with the platform.
Investor behavior shows a growing interest in acquiring MATIC, with a significant drop in the token’s availability across exchanges. A substantial collective purchase, amounting to around 59 million MATIC worth $70.2 million, hints at the potential for the currency’s continued ascent, provided it can firmly overcome the resistance level at $1.18.
Projections and Challenges for MATIC
Recently, a minor correction in MATIC’s price pointed to a pause in its previously unrelenting advance. The token encountered a ceiling at $1.18, which it had initially breached but subsequently retracted to. The ability to transform this resistance into a support level could pave the way to higher peaks, possibly reaching the year’s zenith at $1.30.
Conversely, the absence of a similar price surge in the previous year around April raises the specter of a potential dip from the $1.18 mark. MATIC might face a downturn leading to a 10% price correction to $1.05, and if support levels fail to hold, the bullish outlook may dissipate, potentially seeing MATIC drop below the $1 threshold.