Polygon has been on a roll lately with internal developments driving MATIC’s price upwards, regaining the token’s November 2022 levels and giving confidence to investors.
Ali Martinez, a veteran analyst in the crypto space, recently noted the huge demand that formed at the token’s recent price of $1.11.
#Polygon has built a massive support level!
On-chain data reveals that 49,500 addresses purchased 4.65 billion $MATIC between $0.94 and $1.11. This important demand wall may have the strength to keep #MATIC at bay in the event of a correction and serve as a rebound point. pic.twitter.com/cFp1ASnRmB
— Ali (@ali_charts) February 9, 2023
According to his recent tweet, over 49k wallets bought in at $1.11, making the price range to become a crucial demand support for the token.
This could be a saving grace for MATIC which is currently facing resistance. As of writing, the token is down 3.3% in the daily time frame which might set off alarms for investors.
Recent Developments Empower Investors
There are reasons as to why MATIC is currently sitting comfortably up on top. NFTs, or non-fungible tokens, on Polygon are having a field day recently.
According to WuBlockchain, Polygon has reached an all-time-high in NFT transaction volume on OpenSea. Reaching $11 million, this was caused by Reddit’s partnership with the NFL to create Super Bowl-themed NFTs.
On February 8, the single-day transaction volume of NFT on the OpenSea Polygon increased to $11.4 million, hitting a record high, mainly due to the Super Bowl NFT avatar minted by Reddit in cooperation with the NFL, which has minted more than 1 million. https://t.co/KuCPyqaC2e https://t.co/FZ5N3oCMyt
— Wu Blockchain (@WuBlockchain) February 9, 2023
Dune Analytics also shows that monthly NFT transaction volumes have reached June 2022 levels which is an achievement in itself as the NFT market slumped due to last year’s bear market.
Polygon’s Weekly Roundup series also shows a bullish narrative for investors. K-Pop group Aespa has recently partnered with Paper Magazine and Dematerialized for a new digital capsule collection exclusively on Polygon.
With Aespa’s international reach over K-Pop enthusiasts, this digital capsule collection would bring more eyes on Polygon further solidifying the ecosystem’s dominance in Web3 and DeFi.
MATIC Slipping At $1.20 – Can The Demand Zone Hold The Bearish Tide?
At the time of writing, February 10th, the token’s recent attempts to breach $1.35 resistance has failed and has since been going downwards.
If MATIC continues this bearish movement, the token might revert above $1.18 support level. This is, of course, if recent developments on-chain has not affected investor sentiment.
However, investors and traders should keep in mind MATIC’s high correlation with Bitcoin, according to crypto analysis tool IntoTheBlock.
MATIC total market cap at $11 billion on the daily chart | Chart: TradingView.com
This high correlation, as well as the recent downward trend of BTC, could hinder the price movement in the short to medium-term.
MATIC bulls, on the other hand, may have the support of a recent demand wall at the $1.11 level, which would be supportive of future upside price movements.
As the on- and off-chain developments continue to unfold, we may see the token become one of the safer investments to be made in the Web3 space.
Featured image from Forbes