The Polygon (MATIC) price has recorded more than 14% gains in the last six days despite the broader crypto market’s sluggish conditions.
At the time of press, the MATIC price was sitting at $0.8723, charting 7.91% daily gains as the coin made a recovery above the $0.84 mark. This move caused MATIC to shoot to the first rank of the CoinMarketCap top gainer’s list, as investors got some short-term relief.
MATIC price eyeing $1?
The MATIC price made many unsuccessful attempts throughout October to push above the key resistance level of $0.84.
Around Oct. 13, the MATIC/USDT pair broke above the bearish trendline that formed at the beginning of October. As the price gained momentum, the RSI further broke free from the downward trend.
The next noticeable supply barrier would be found near $0.97, where over 45,000 addresses hold 969 million MATIC. In the near term, the MATIC price could see a relief rally to $0.94 if the bullish momentum continues.
With RSI turning positive, the price action could turn in favor of the bulls. On the other hand, if bulls fail to keep prices above $0.85, downward momentum could take over and push prices back to $0.75.
New participants flocking
MATIC has been gaining daily active addresses (DAA) during this bullish price action. DAA figures spiked by over 60% in the span of just a few days.
Data from IntoTheBlock also highlighted that over the last seven days, new addresses jumped by 11.54% while active addresses noted a 19.47% uptick.
However, MATIC’s MVRV (market value/realized value) showed some signs of overheating as the 7-day MVRV ratio started to flat-line at higher levels. Nonetheless, with 30-day MVRV still in an uptrend, the long-term trend seems intact.
MATIC’s network growth also saw a decent uptick which could support short-term price momentum. However, with whale accumulation still sitting at low levels, it can be inferred that bigger fish are still cautious and haven’t started to accumulate again.
On the whole, while MATIC’s on-chain metrics indicate a healthy outlook for the coin, there’s only so much recovery that can be expected when whale accumulation and large transactions sit at a low.
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