Bitrabo Editorial
The price of Polygon (MATIC) has been on an upward trend since May 17, but has struggled to break past the $0.90 resistance level, despite a 7% rebound over the last two weeks. However, there are indications that Polygon may soon break that resistance level and head towards the $1 mark.
One reason for this is the success of Polygon’s newly-launched ZkEVM Roll-up product, which reached $28 million in Total Value Locked (TVL) on June 3. This has attracted new demand to the native blockchain. In addition, a recent partnership between Nike and EA Sports, which will allow members of Nike’s Web3 platform, .SWOOSH, to gain access to Nike-branded digital collectibles infused into EA games, is expected to increase Polygon’s user base.
Furthermore, the recent increase in buying pressure by whales, who hold balances of 100,000 to one million MATIC tokens, suggests that the price of MATIC may rise further. On-chain data shows that after some profit-taking on June 1, these whales started buying again, accumulating 3.26 million MATIC in just the last four trading days. Because their buy/sell patterns have been closely correlated with MATIC price swings, they could almost single-handedly trigger another price rally if they continue buying.
Polygon is Attracting New Users
The proliferation of Polygon’s ZkEVM has helped the Ethereum-scaling solution attract new users. On June 3, Polygon recorded its highest Network Growth since April 26, 2023, indicating that the project is gaining market share. This typically has a positive impact on price, which could help MATIC break the $0.90 resistance and head towards the $1 mark.
MATIC Price Prediction: $1 is a Viable Price Target
IntoTheBlock’s Global In/Out of The Money Around Price (IOMAP) data shows that MATIC will face an initial resistance around the $0.94 mark, with 8,690 investors that bought 3.93 billion MATIC at an average price of $0.94 potentially causing a sell-wall. However, if the bulls prevail, the price could rise further towards $1.
On the other hand, if the price of MATIC drops unexpectedly below the critical $0.84 support zone, bears could invalidate the bullish MATIC price prediction. This is unlikely, however, given that 15,800 million investors that purchased 275.44 million MATIC at a minimum price of $0.84 will likely prevent that from happening. In the worst-case scenario, if that support level is breached, MATIC could retrace further towards $0.77.
Disclaimer
This price analysis article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.