Increasing Interest in Polygon (MATIC) Sparks Speculation on Potential Price Surge

In Brief

Polygon (MATIC) price recently dipped below the crucial $0.80 support level amidst the controversy surrounding Binance exchange. However, on-chain data suggests potential for a positive trend.

The number of daily MATIC wallets created reached 1,175 addresses on November 22, just 42 short of the four-month high recorded on November 16. A rare positive divergence between Receiving and Sending Addresses indicates increasing demand.

Ecosystem Updates and Partnerships Have Attracted Investor Interest

The Polygon network has gained significant investor attention due to recent improvements and strategic partnerships. Despite market uncertainty following Binance’s leadership changes, demand for MATIC remains steady.

On November 22, the number of new MATIC wallets created daily reached 1,175 addresses, approaching the four-month high of 1,217 recorded on November 16.

The chart below illustrates the impact of Polygon’s recent partnership announcements and network updates on investor interest, potentially influencing MATIC’s price.

Demand For MATIC Has Exceeded Selling Pressure Despite Market FUD

On-chain data reveals a positive divergence between the number of MATIC buyers (receiving addresses) and sellers (sending addresses). Despite a 36% retracement from the recent peak, demand for MATIC remains strong.

The latest data shows an increase in MATIC receiving addresses (buyers) from 1,595 wallets to 2,156 wallets between November 20 and November 22. Meanwhile, sending addresses (sellers) decreased slightly from 1,335 to 1,273 wallets.

This divergence, indicating more buyers than sellers, played a role in MATIC’s 7% price rebound from the weekly low to $0.78 on November 23.

MATIC Price Prediction: Road to Reclaim $1?

Rising network demand is a significant factor driving buying momentum in MATIC markets. With bullish metrics trending, MATIC’s price is positioned for potential upward movement.

Global In/Out of the Money (GIOM) data supports a short-term bullish forecast but emphasizes the need to overcome the initial resistance at $0.80 for a confident $1 retest.

If the bulls successfully surpass this resistance, the MATIC price rally could head toward $1. However, a dip below $0.65 could negate the bullish forecast, with a strong support zone observed at $0.68.