Cryptocurrency expert Rekt Capital has indicated the possibility of a significant price surge for Polygon’s MATIC token beyond its current value. The token’s upward journey hinges on its ability to break through the $1.34 resistance level. Should this resistance turn into support, MATIC might witness a phase of increased volatility. Rekt Capital further implied that such volatility combined with strong momentum could push MATIC’s value over the $2 mark.
Assessing MATIC’s Bullish Signals
At the moment, MATIC has seen a 10% uptick over the past week, trading at $1.25 with a billion-dollar volume. This recent price trend suggests MATIC may continue its ascent. Nevertheless, if its price rises while trading volume decreases, the bullish trend could falter, potentially stalling its ascent. Conversely, rising volumes alongside price hikes could enable MATIC to conquer the $1.34 resistance.
Token circulation is a vital indicator, reflecting the number of tokens being actively traded. An uptick in circulation typically points to increased selling and could pressure prices downward. That said, reduced circulation, signalling lower selling pressure, might suggest a price uptrend—a pattern currently observed with MATIC. Its daily circulation has notably fallen to 32.23 million tokens.
Understanding the Impact of Active Addresses
Rekt Capital also scrutinizes the volume of active addresses within a day. Presently, the Polygon network boasts 484,000 active addresses, a positive trend that signifies robust user engagement. However, a profit-taking wave from these investors could prompt a steep price drop for MATIC. Any subsequent dip below $1.25 could present a lucrative purchase window for those looking to invest at a lower entry point.