Whales are interested in Polygon again: how it will affect the price of MATIC
Date: 2023-07-08 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of the native token of the L2 blockchain Polygon broke above the critical resistance level of $0.70 for the first time since receiving a lawsuit from the US Securities and Exchange Commission (SEC).
On June 10, the price of MATIC fell to a one-year low of $0.55 after the SEC called it a security. Since then, the price has risen by 31%, rising above $0.71 on July 5. The recent flurry of sell-offs provoked a slight pullback, but as interest in Polygon rises, the bulls may regain control.
The activity of users of the Polygon network is growing
This week, retail user activity on the Polygon network began to grow. The chart below illustrates the gradual increase in daily active addresses from 1.3 million on June 27 to 1.34 million at the close of trading on July 6.
The Active Addresses metric tracks changes in daily activity by summing up the number of wallet addresses that have transacted over a seven-day period. An increase in demand from users tends to put upward pressure on the price.
If the number of addresses interacting with the blockchain continues to increase, the recent price correction can be quickly overcome.
Crypto whales are buying up MATIC
However, the demand for Polygon is growing not only among the participants of the retail network. On-chain data from the Santiment platform shows that large investors have actively moved to buying.
As shown in the chart below, MATIC whales holding between 10 and 100 million tokens replenished their wallets with 26 million coins worth more than $17 million in the first week of July.
Such a high level of accumulation indicates that the big players are confident that the surrounding Polygon FUD will soon dissipate.
Growing demand could push Polygon to $0.80
Given the bullish factors noted above, the price of Polygon is likely to rise to $0.80 in the coming days. However, on the way to this mark, the asset must first overcome the resistance of 6060 addresses that bought 300 million MATIC at an average price of $0.71.
If the bears fall below $0.62, the bears will nullify the positive outlook. 6800 wallets that have purchased 21 million tokens at this price can provide MATIC with some support. But if this does not happen, the asset will face a further decline to the level of $0.58
