Market Analysis: Polygon’s MATIC Token
The cryptocurrency market has recently seen a mix of sentiments, with established coins maintaining stability while midcap altcoins, particularly Polygon’s MATIC token, experience substantial momentum. October concluded on a positive note, witnessing Bitcoin’s price surge by over 28%.
Understanding the Surge in Polygon Price
Several factors have contributed to the recent surge in Polygon’s MATIC token price:
- Whale transactions involving MATIC tokens increased by 17% within the past week, indicating significant movement in volume.
- The Polygon Network recorded a remarkable 495% surge in its exchange flow, emphasizing increased activity.
- Polygon gained attention due to its plans to upgrade the MATIC token and the launch of its new sister token, “POL,” on the Ethereum mainnet.
Currently, MATIC serves as the primary currency for the Polygon Network. The upcoming POL token, set to replace the MATIC gas token, initially led to a slight dip in MATIC’s price. However, developers aim to establish POL as a single-use crypto for all Polygon-based systems, likely driving price momentum.
Price Movements and Predictions
Throughout October, MATIC’s price fluctuated within a range of $0.5239 to $0.5791. After experiencing a Death Cross, the price broke the support level and surged, reaching a key resistance level at $0.6550.
Although attempts to breach $0.6550 were made, the price faced resistance and currently trades between $0.6095 and $0.6550. The Relative Strength Index (RSI) indicates potential price volatility, hinting at a potential bullish convergence soon.
Future Predictions for MATIC Price
If Layer-2 bulls successfully push the price above $0.6550, MATIC could regain momentum and aim for the upper resistance level at $0.700. In a bullish market scenario, the price might even test $0.748 in the coming days.
Conversely, if bears dominate and a price dip occurs, MATIC may fall to its support level of $0.6095. Continued bearish influence could lead to a further dip, testing the lower support level at $0.5791 in the upcoming week.