Polygon (MATIC) has been steadily rising. Despite a stiff challenge from the bears at $2.70, the bulls did not give up much ground and have pushed the price to a new all-time high today. It is currently trading at $2.83, up 1.37 percent from yesterday. CoinMarketCap currently ranks 14th, with a live market cap of $20,017,986,846 USD.
The Bulls are Finally in Charge
The Polygon Network and its MATIC token appear to be gaining popularity and activity. Just recently, Uniswap v3 launched on Polygon to offer users cheaper transactions. This project and many others are increasing the number of active addresses on the Polygon Network triggering growth.
The Matic token was one of the “hottest” digital assets on the crypto market in December, with a total of 15,500 active addresses.This was after the token reached its previous high at the beginning of the month.
After three failed attempts to break out and sustain above $2.70, the bulls have finally broken through the resistance. On the other hand, the bears are unlikely to give up easily and will attempt to halt the uptrend at the ascending channel’s resistance line once more.
The network activity metric nearly perfectly correlates with the asset’s price. Traders were able to see a spike in network activity during the market rally, according to a Santiment chart.
The only thing that might worry some investors is the unsettling divergence between network activity graphs and asset prices. While the MATIC trend appears to be bullish, the network activity chart clearly shows a descending movement.
However, if the price falls and breaks below the 20-day moving average, it will indicate that the current breakout was a bull trap. The pair could then fall to $2, then to $1.73.
What We are Expecting
The pair could drop to $2.42 if the price declines from its current level and breaks below the 20-EMA. The bulls must defend this level of support because if it fails, the pair could fall to the 200-SMA.
On the other hand, bullish momentum could pick up even more if bulls drive and sustain the price above the channel.
The MATIC/USDT pair could start the next leg of the uptrend if bulls keep MATIC prices above $2.70. The pair could first soar to $3.41, and if that level is surpassed, the uptrend could reach the psychological level of $5.
WalletInvestor.com predicts that MATIC’s price will nearly double to $4.52 by the end of 2022 using a proprietary algorithm. WalletInvestor expects the cryptocurrency to experience volatility in the coming year but ultimately expects the price to increase by 96 percent or more. The website says that due to the virtual currency’s positive outlook, they recommend including it in one’s portfolio.