Cryptocurrency Analyst’s Insights
Cryptocurrency analyst Rekt Capital suggests that Polygon (MATIC) has the potential to reach higher than its current level. However, the analyst mentioned that the anticipated rise is dependent on overcoming the resistance at $1.34. Rekt Capital also noted that if MATIC flips this resistance, it could experience high volatility. According to the analyst, if volatility is high and momentum is on the rise, it could mean that the price of MATIC might surpass $2.
MATIC’s Uptrend Tendencies
At the time of writing, MATIC was trading at $1.25, representing a 10% increase over the last seven days. The volume was one billion at the time of writing. Considering the rising price action, it can be inferred that MATIC may show a higher trend. If the volume decreases while the price of the cryptocurrency increases, the uptrend may weaken. In such a case, MATIC’s upward movement could come to a halt. On the other hand, experts believe that if the volume continues to increase along with the price, the token could break the $1.34 resistance.
Factors Influencing Price Movement
- Circulation tracks the number of tokens participating in transactions over a certain period and also plays a role in assessing the potential price of a cryptocurrency. If circulation increases, the likelihood of selling may also increase, which could mean a drop in the token price. However, a decrease in circulation due to lower selling pressure could indicate an uptrend. This was the case for MATIC. If the number of tokens used continues to decrease, the price could rise. At the time of writing, Polygon’s daily circulation had dropped to 32.23 million.
- Another metric examined by the expert is active addresses, this time over a 24-hour period. At the time of writing, the number of active addresses on the Polygon network had risen to 484,000. The increase in active addresses over 24 hours could mean that many users are interacting with the Polygon network. If investors decide to take profits, it could lead to a sharp correction for MATIC. A drop in the cryptocurrency’s price below $1.25 could be a good opportunity to buy at a lower price.
