The crypto market meltdown on May 5 saw Polygon’s (MATIC) price slide below $0.90 for the first time since January. But Sotheby’s recent global NFT product launch appears to be rekindling investor interest across the network. Is this enough to validate a bullish MATIC price prediction?
On May 1, 2023, Sotheybys, one of the world’s largest brokers of fine art and collectibles, announced the decision to launch an NFT marketplace on Polygon (MATIC) network and Ethereum.
The product launch will enable crypto investors to conduct peer-to-peer secondary NFT artwork sales.
Barely a week after Sotheby’s NFT launch, Polygon is already witnessing growing demand and attracting new users. Here’s how this could propel MATIC’s price out of its current bearish trend.
Polygon is Attracting New Users
Network growth tracks the number of new wallet addresses created on a blockchain network. After recording a steep decline in April, the Glassnode chart below illustrates how Polygon Network Growth has soared 51%, from 419 to 633 new wallet addresses, between May 6 and May 10.
Polygon is a popular blockchain network for NFT trading due to its low fees and fast transaction times. It’s no surprise that on-chain data has recently shown an uptick in the number of new users joining the Polygon network.
If this trend continues, the demand from the new users could validate the bullish MATIC price prediction.
Demand for MATIC is Growing
Moreso, it appears that the influx of new users has translated into an increase in investors’ demand for MATIC. The aggregate order books of exchanges presented below show that MATIC buy-orders have now exceeded the market supply.
Currently, investors have placed limit orders to buy 23 million MATIC coins. But, in confirmation of the bullish stance, Polygon traders have only put 17.5 million coins around the current prices.
The Exchange Market Depth metric aggregates all limit orders placed on recognized exchanges by holders of a specific cryptocurrency. And with the current excess market demand of 5.5 million MATIC, prices will likely rise as buyers begin to compete.
In summary, if the Network Growth continues to rise, demand will likely increase further. And ultimately, the bullish MATIC price prediction will likely be validated.
MATIC Price Prediction: Bulls Have Eyes on $0.97
According to the In/Out of the Money data below, Polygon price will likely rebound toward $0.97. But for bulls to be confident of the positive MATIC price prediction, it must first breach the $0.92 resistance level.
At that point, the cluster of 28,000 investors that paid an average price of $0.92 could sell some of their 676 million coins. However this cluster represents a large resistance for bulls to overcome if price is to continue to rise.
But if the bullish Polygon price prediction is validated, the rally could reach $0.97 before facing more significant resistance. The $0.97 price mark sees a massive amount of holders who entered the market.
This cluster holds over 4 billion coins. At the current average price of $0.86, this represents $3.4 billion.
Conversely, if MATIC price sinks below its initial support around $0.83, the bearish trend could last longer than expected. However, the buy-wall from the 14,700 investors that bought 204 million coins at the minimum price of $0.84 could look to prevent the drop.
Although unlikely, failure to hold this support level could see MATIC price drop further toward $0.76.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/matic-price-slides-sothebys-nfts-rescue/