Despite its recent bullish move, Polygon (MATIC) has been repeatedly rejected by its $0.70 resistance. Can it reach a $1 course?
Robinhood Should Suspend Trading Polygon (MATIC), Cardano (ADA) and Solana (SOL) this Tuesday, June 27. A decision that should allow the platform to protect itself from the American stock market policeman.
MATIC was hit hard by the delisting announcement, but it only took a few days to regain the $0.70 mark. Similarly, most on-chain indicators point to good times for Polygon’s native token.
Polygon (MATIC) continues to appeal to investors
The MATIC price quickly fell into the red when the SEC pinned 🔨 Binance and Coinbase. But when the token fell below $0.77 on June 7, investors started hoarding it.
Even better, MATIC holders placed another 158 million tokens (1.7% of circulating supply) in 🪙 strike between 7 and 26 June.
The last two times that staking deposits exceeded 100 million coins were in October 2022 and January 2023. As seen in the chart below, these two increases in staking activity pushed up the MATIC price by 70% and 93% respectively.
The indicator Delivery in Smart Contractsdepicted in the chart above, is used to calculate the amount of tokens locked in smart contracts.
The fact that this indicator rises in the middle of a correction indicates that investors are refusing to liquidate their assets. As a result, they turn to 💻 DeFi platforms to compensate for their losses, especially by participating in stakes or 🧑🌾 yield farming activities.
If the scenario from October 2022 and January 2023 repeats itself, the MATIC price could reach $1 in the coming weeks.
MATIC leaves the stock exchanges
Instead of liquidating their assets, MATIC holders left the 💱 exchanges after the SEC announcement. While some have turned to 👛 non-depot wallets, others have opted for DeFi return protocols.
As a result, the MATIC balance of major crypto exchanges recorded several lows this month. At the time of writing, exchanges hold around 1.074 billion MATIC tokens.
As shown in the chart below, investors withdrew around 161 million MATIC from the exchanges between June 9th and June 26th.
Declining currency balances are usually a good sign for MATIC crypto holders. This for several reasons.
First, the lower supply available on crypto exchanges causes buyers to compete with each other and offer higher prices to sellers.
Second, by moving their tokens from exchanges to staking protocols, investors contribute to the security of the Polygon network and provide much-needed liquidity to the projects hosted there.
To summarize, declining currency balances and increased betting activity are likely to push the MATIC price up.
MATIC Price Prediction: Watch out for $0.70 resistance
Given the strong growth in Polygon betting activity, its price is expected to reach $0.75 in the coming weeks. However, to reach this level, the token must first break its $0.70 resistance.
According to the indicator Global in/out of the money around price (GIOM) of IntoTheBlock, the 2,480 investors who bought 109.81 million MATIC at an average price of $0.70 is likely to trigger a bearish move.
Nevertheless, if the MATIC price manages to break its resistance, it can easily break above $0.75.
However, the asset is likely to fall as low as $0.60 if it loses its critical support at $0.65. But again, the 4,310 investors who bought 561.2 million MATIC at an average price of $0.65 can slow down movement.
Moral of the story: MATIC’s future is still uncertain, but one thing is certain: its fate is not in Robinhood’s hands.
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.