For the first time since the SEC lawsuit, Polygon (MATIC) price broke above the $0.70 critical resistance. While the price of MATIC has not yet fully recovered, Polygon Network has seen an increase in user attraction this week. As demand for Polygon rises, will it develop into an even larger price hike for MATIC?
On June 10, the price of MATIC collapsed to a 2023 low of $0.55 after the Securities and Exchange Commission called MATIC a ‘security’ in a lawsuit. Since then, MATIC stock is up 31%, bouncing back above $0.71 on July 5.
A wave of selling led to a moderate bounce, but with Polygon in high demand, the bulls can regain control.
Polygon Retail user activity is on the rise
This week, retail user activity across the Polygon network increased. The chart below shows how MATIC DAILY active addresses (7d) Gradually increasing from 1.3 million users on June 27 to 1.34 million active users at the end of July 6.
Active Addresses (7d) tracks changes in daily user activity by summarizing the number of wallet addresses that executed transactions over a seven-day period. Usually, when user demand goes up, it puts upward pressure on the price.
Over the past week, this increase in demand from Polygon users has positively affected the price of MATIC. The recent price correction can quickly reverse if active addresses Keep increasing.
Whale investors in Matic are also accumulating bullish pressure
Polygon is not in high demand among retail network participants alone. On-chain data collected by Santiment reveals that whale investors, too, have been building up pressure.
As shown below, matic whales holding 10 million to 100 million tokens have entered accumulation mode. Since the beginning of July, they have collectively added 26 million MATIC tokens to their wallet balances.
At the current market price of $0.67, this new investment is worth $17.4 million. Barely a week into July, this high level of backlog indicates that the bulls are confident that SEC FUD will fade.
MATIC Price Prediction: High demand may push it to $0.80
Looking at the bullish factors shown above, Polygon (MATIC) price is likely to rise towards $0.80 in the coming days. However, to be confident of the bullish reversal, MATIC price should test the $0.75 resistance level first. In that area, the 6060 investors who bought the 300M Matic at an average price of $0.71 could trigger another pullback.
If the bulls can overcome this challenge, MATIC is likely to rally towards $0.80.
Conversely, the bears can invalidate the bullish forecast for MATIC price if the price unexpectedly drops below $0.62.
Although, as shown below, the 6,800 investors who bought 21M MATIC at a minimum price of $0.62 likely prevented the decline.
However, if the support level caves in, the bears may force a bearish move towards $0.58.
In line with 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 and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.