Analyzing the Surge in Polygon (MATIC) Prices: Key Factors at Play

The Surge in MATIC Prices

The MATIC Price has witnessed a surge of over 15%, reaching $0.85 in the morning, as bulls aim to push the token beyond the crucial $1 mark.

MATIC Current Trading Situation

MATIC is currently trading at $0.83 and could continue to push higher if it crosses the resistance levels at $0.850 and $0.880.

MATIC Experiencing Remarkable Surge

MATIC has been experiencing a remarkable surge in its price and market capitalization over the past few weeks. The token has now reached prices not seen since last July, with its market capitalization growing by 54% in just three weeks, according to data from Santiment.

Data from Santiment also noted that MATIC’s recent upward trajectory has received considerable support from key wallets that hold a substantial amount of MATIC tokens.

• The wallets in question held between 100,000 and 10 million MATIC.
• Since October 28, these wallets have accumulated 42.88 MATIC tokens worth nearly $40 million.

The increase in accumulation by these whale wallets led to increased buying pressure on MATIC, contributing to the overall bullish sentiment in the market.

MATIC Price Action

MATIC is currently trading at $0.82. After forming a base just above $0.65, the MATIC price registered a strong increase, breaking past $0.70 and moving into a positive zone, similar to Bitcoin (BTC) and Ethereum (ETH).

Late on Thursday, MATIC experienced a sharp drop below $0.80 but recovered, surging past $0.80, reaching a high of $0.85, and testing the resistance at $0.850.

Despite a subsequent decline to $0.82, MATIC remains above the $0.82 level. A key bullish trend line is forming, with support near $0.775 on the 4-hour chart, close to the 61.8% Fib retracement level.

MATIC Faces Resistance

MATIC faces immediate resistance at the $0.850 level, with the first major resistance at $0.880. A break above this level could lead to further upward momentum, with the next major resistance around the $0.920 level.

Any move above $0.920 could see MATIC approaching $0.980 or the coveted $1 mark.

Downside Correction?

If MATIC fails to move past the $0.850 resistance, a downside correction may occur, with immediate support at $0.80. The main support sits at $0.775, and a break below this level could lead to a drop towards $0.720. The next major support for MATIC is at $0.70.