Polygon’s MATIC Soars Toward Crucial Resistance Level! Will MATIC Price Hold Bullish Momentum?

In recent hours, Polygon’s MATIC token has shown strong bullish indicators following significant updates in governance proposals for the community. As the crypto market shows signs of stabilization and recovery, MATIC’s price is bringing hopes for additional corrections. This renewed hope is backed by a surge in network activity and noticeable movement among large-scale investors, commonly known as “whales.” 

Polygon 2.0’s Implementation Sparks A Fresh Surge 

Today, Polygon, the leading scaling solution for the Ethereum network, formally put forth three pivotal modifications in anticipation of its upcoming 2.0 upgrade. These proposed changes, pending community approval, involve introducing a new POL token to replace the existing MATIC token. The announcements concerning Polygon’s upgrades are expected to positively influence the price of MATIC, which has been on a recovery trajectory this week. 

Data from Coinglass reveals that short positions totaling more than $150,000 were liquidated in recent hours after MATIC’s price successfully resisted dropping below the $0.5 mark. This turn of events has shifted market sentiment towards bullish expectations, marked by a significant uptick in MATIC buying activity. This trend indicates increasing demand for MATIC at its current price point. 

Furthermore, recent on-chain data from IntoTheBlock has revealed a noticeable uptick in large transactions and outflow volume. Specifically, more than 10 million MATIC tokens have been withdrawn from exchanges over the past three days. This movement follows the promising developments around Polygon’s new POL token, adding a reason for massive accumulation. In terms of market activity, the volatility rate for MATIC has surged to an impressive 47.25%. 

This increased volatility suggests a surge in trading activity amid bullish sentiment, bringing possibilities of a breakout movement in the upcoming hours. 

What’s Next For MATIC Price?

Over the last few hours, bulls have been attempting to validate a clear bullish rally as MATIC’s price struggles to break above the neckline of the resistance level. This indicates that any small price upticks are being met with selling. As of writing, MATIC’s price trades at $0.523, surging over 2.3% in the last 24 hours.

For a sign that bearish momentum is fading, the bulls need to push and maintain the price above the 50-day EMA and $0.54. A successful move could initiate a rally towards EMA200 at $0.57, a point where bearish traders are likely to put up a robust resistance.

On the downside, the bears are aiming to drag the price beneath the immediate support level of $0.49. Achieving this could send the MATIC price tumbling to a crucial support level of $0.42. The bulls are likely to defend this level aggressively, as falling below it could pave the way for a further decline.