Despite the slowdown in the overall cryptocurrency market, Polygon (MATIC) has gained more than 14% in the last six days.
The MATIC price was at $0.8723 at the time of writing, representing a daily gain of 7.91 percent as the coin recovered above $0.84. Investors received some short-term relief as a result of this move, which propelled MATIC to the top of the CoinMarketCap list of the top gainers.
MATIC price eyeing $1?
Throughout the month of October, the MATIC price made numerous unsuccessful attempts to rise above the primary resistance level of $0.84.
The MATIC/USDT pair broke above the bearish trendline that formed at the beginning of October around the 13th of October. The RSI continued to break free from the downward trend as the price gained momentum.
Near $0.97, where over 45,000 addresses hold 969 million MATIC, the next obvious supply barrier would be found. If the bullish momentum continues, the MATIC price may experience a relief rally to $0.94 in the near future.
The price action may move in the bulls’ favor if the RSI turns positive. On the other hand, prices could fall back to $0.75 if the bulls are unable to maintain a price level above $0.85.
New participants flocking
During this bullish price action, MATIC has been gaining daily active addresses (DAA). In just a few days, DAA numbers increased by more than 60%.
According to IntoTheBlock data, new addresses have increased by 11.54 percent in the past seven days, while active addresses have increased by 19.47 percent.
However, as the 7-day MVRV ratio began to flatline at higher levels, MATIC’s MVRV (market value/realized value) showed some signs of overheating. However, the long-term trend appears to be intact, as the 30-day MVRV is still in an uptrend.
Short-term price momentum may be supported by MATIC’s network growth, which also saw a respectable increase. However, larger fish are still cautious and have not begun to accumulate again because whale accumulation is still at low levels.
Although MATIC’s on-chain metrics generally point to a positive outlook for the coin, there is only so much recovery that can be anticipated when whale accumulation and large transactions are at their lowest levels.
