Best Ethereum Scaling Solution Eyes Breakthrough
Key points to remember
- Polygon’s MATIC has seen its price increase by more than 13% in the last two days.
- On-chain metrics show strong resistance at $1.53 as demand rises.
- Overcoming this crucial hurdle could lead to a price increase of 41%.
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Polygon held above a critical support level following the sharp correction seen in the cryptocurrency markets over the past few weeks. The whales appear to have appreciated the retracement to buy discounted tokens, positioning MATIC for significant bullish momentum.
Polygon’s MATIC Sees Buying Pressure
Polygon appears to be gaining the buying pressure it needs to break out.
The Layer 2 Scaling Network token MATIC has seen a price increase of over 13% in the past two days. MATIC has bounced off the X-axis of a descending triangle that has been developing on its 12-hour chart since mid-January. Although Polygon continues to consolidate in this technical pattern, a breach of the $1.54 resistance level could result in significant gains.
The height of the Y-axis of the triangle added to the breakout point suggests that a sustained close above $1.54 could result in a 41% rise to $2.16.
Still, on-chain data shows that cutting $1.54 may prove difficult.
IntoTheBlock’s In/Out of the Money Around Price model shows that almost 18,500 addresses have already purchased more than 850 million MATIC between $1.54 and $1.59. The significant supply wall could have the strength to absorb any upward price action, while a 12-hour candle near this hurdle could lead to higher highs.
It should be noted that the buying pressure behind Polygon has accelerated significantly over the past three weeks. Polygon addresses holding between 1 million and 10 million MATICs have added more than 60 million MATICs worth approximately $84 million to their holdings since April 8. If the buy orders continue to rise, MATIC could experience a breakout.
As the odds seem to favor the bulls, the $1.25 support level will likely be decisive. A sharp drop below this demand zone could invalidate the optimistic outlook and lead to a sharp correction. MATIC might then lose $1.14 looking for support.
Disclosure: At the time of writing this article, the author of this article owned ETH and BTC.
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