Since the SEC lawsuit, Polygon Price has broken above the crucial ₹57.50 resistance level for the first time. Although the MATIC price has not fully recovered, there has been an increase in user traction on the Polygon network this week. With the growing demand for Polygon, could this lead to a larger rally in the price of MATIC?
After being categorized as a 'security' by the SEC, MATIC's price plummeted to its lowest point of ₹45.01 in 2023 on June 10. However, it has since experienced a rebound of 31%, surpassing ₹58.66 on July 5.
Although there has been a slight retracement caused by a series of sell-offs, if the demand for Polygon continues to rise, the bulls may regain control.
Polygon Price: MATIC Retail Activity Skyrockets
Throughout the week, there has been a rise in retail user engagement on the Polygon network. The provided chart demonstrates the gradual growth of MATIC Daily Active Addresses (7d). The chart shows that starting from 1.3 million users on June 27, the MATIC users reached 1.34 million active users by the end of July 6.
The metric Active Addresses (7d) measures fluctuations in daily user engagement by aggregating the number of wallet addresses involved in transactions over a period of seven days. Typically, an increase in user demand leads to upward pressure on the price.
The surge in user demand for Polygon over the past week has had a positive impact on the price of MATIC. If the number of Active Addresses continues to rise, it is likely that the recent price correction will be swiftly reversed.
Massive MATIC Whales Amplify Bullish Surge
Polygon demand is not only increasing among the retail network participants. According to on-chain data compiled by Santiment, even whale investors are exerting bullish pressure by accumulating MATIC tokens.
As shown below, whale investors holding 10 million to 100 million tokens of MATIC have entered an accumulation phase. Since the beginning of July, they have collectively added an additional 26 million MATIC tokens to their wallet balances.
Based on the current market price, this fresh investment amounts to ₹1.4 billion. It is noteworthy that within just a week of July, this significant level of accumulation indicates the growing confidence of the bulls that the concerns raised by the SEC will eventually dissipate.
Polygon (MATIC) Price Outlook
The price of MATIC is currently trading at ₹56.29, increasing by more than 2.8% in the last 24 hours. Given the positive factors mentioned earlier, it is probable that the price of MATIC will continue to experience a bull run.
However, experts anticipate that for the bullish trend to be confirmed, the MATIC price needs to surpass the resistance at ₹62.00. This particular level also has the potential to trigger a reversal trend.
The recent surge in demand for Polygon has had a significant impact on the price of MATIC. Despite facing challenges due to the SEC lawsuit, MATIC has shown signs of recovery. The token surpassed key resistance levels and experienced a rebound of 31%.
The rise in user traction on the Polygon network, as indicated by the increase in daily active addresses, has contributed to this positive momentum. If this trend of increasing demand continues, it is likely that the recent price correction will be reversed, leading to a potential larger rally for MATIC.
To know more about the Polygon Price movement, go check out SunCrypto Academy.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The provider offers all content for informational purposes only, and you should not rely on it as financial/investment advice. If there are any opinions shared, they are only shared for information and education purposes. Despite making the best efforts to ensure accuracy and up-to-date information, unintended errors or misprints may occasionally occur. We recommend you to please do your own research or consult an expert before making any investment decision. You may write to us at [email protected].