Polygon price is up 6% on Wednesday’s U.S. trading session following the general market uptick. The bullish momentum backed by whale buying and the network’s address activity surge provides a decisive breakout from the five-month correction trend. Will the recovery be sustained?
Polygon Price Signals Major Breakout From Reversal Pattern
The Polygon price daily chart showed a steady downtrend since April 2024 under the influence of a falling wedge pattern. The two downsloping trendlines acted as major dynamic resistance and support, but their converging nature typically indicates waning bullish momentum.
Bucking the recent market correction, the altcoin price rallied from $0.398 to $0.48 since last week, registering a growth of 22%. The recovery can be attributed to a recent announcement by Polygon that the MATIC token will migrate to POL on September 4.
The market reacted positively to this update, and the polygon price gave a decisive breakout from the wedge pattern. A daily candle closing above the resistance and a 4.6% surge, as follows, indicates an early sign of trend reversal.
With sustained buying, the MATIC price could surge 57% to challenge the $0.57 resistance.
Polygon Network Sees Surge in Addresses as Whales Prepare for MATIC Rally
Despite the prevailing correction, the MATIC supply distribution from metric for addresses holding between 100,000 and 1,000,000 coins witnessed a notable rally. The Santiment data shows a recent surge to 830 MATIC, suggesting that larger investors are accumulating the asset in preparation for a further rally.
According to Intotheblock analytics, the number of new addresses in the Polygon network surged from 463 to 725 within a week, while active addresses increased from 1.31k to 2.15k. This significant rise in new and active addresses indicates growing interest and participation in the Polygon network.
The surge in new addresses suggests that more users are onboarding, likely attracted by the network’s scalability and recent developments. Meanwhile, the jump in active addresses indicates increased activity and engagement, which could signal heightened network utility.
On the contrary, the 50-day Exponential moving average at $0.48 may bolster sellers to counterattack. A potential breakdown below the downsloping trendline will invalidate the bullish thesis and could plunge the polygon price below $0.4.
Frequently Asked Questions (FAQs)
The recent Polygon price surge, which saw a 6% increase, is attributed to whale buying and a significant rise in network activity, as more addresses are accumulating MATIC.
The $0.55 and $0.76 stands as key horizontal resistances against potential rally for MATIC buyers.
While the bullish momentum is strong, the 50-day Exponential Moving Average (EMA) at $0.48 could act as resistance and potentially counter the bullish outlook.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/polygon-price-correction-whales-buy-0-60/
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