While the broader crypto market faces strong selling pressure, Polygon (MATIC) stands out with a 10% surge, surpassing the $1 mark and climbing to the 12th position among the largest cryptocurrencies, overtaking Tron (TRX). At the time of writing, MATIC’s 24-hour increase is at 8.5%, trading at $0.99, signaling a potential for further gains as its weekly rise exceeds 30%.
Technical charts suggest that MATIC has made a strong break above $1, and maintaining this level could lead to a rally of up to 70% or more. Crypto analyst Ali Martinez has highlighted MATIC’s trend of breaking out from a symmetrical triangle formation. According to Martinez, a consistent weekly candlestick close above $0.96 could pave the way for a significant upward movement, potentially pushing the price towards $1.73, indicating a bullish outlook for Polygon.
For MATIC to continue on the path outlined by Martinez, it must first overcome the $1.2517 resistance level before targeting higher prices. Conversely, if the trend reverses, MATIC’s price could drop to $0.5101 or even $0.3170. To avoid such a steep decline, MATIC must not close below $0.55.
Over the past week, Polygon whales have been actively accumulating MATIC. Large investors, often referred to as whale-level wallet addresses, have shown a renewed interest in buying, increasing their holdings by 55 million MATIC, worth over $44.5 million, reaching a total of 930.97 million MATIC since December 16.
Interestingly, this accumulation coincided with a correction in MATIC’s price, which has since recovered from $0.765. Historically, the actions of these investors have been a significant indicator of market trends, often preceding market rallies and corrections aligned with their accumulation and selling activities.