Over the past few hours, Polygon’s MATIC token has shown strong bullish indicators following major updates in community governance proposals. As the crypto market shows signs of stabilization and recovery, MATIC’s price gives hope for additional corrections. This renewed hope is supported by a surge in networking activity and noticeable movements among large-scale investors, known as “whales.”
The implementation of Polygon 2.0 is creating a new wave
Today, Polygon is formally the leading scaling solution for the Ethereum network put forward three crucial changes ahead of the upcoming 2.0 upgrade. These proposed changes, pending community approval, include the introduction of a new POL token to replace the existing MATIC token. The announcements about Polygon’s upgrades are expected to have a positive impact on MATIC’s price, which is on a recovery path this week.
Coinglass data shows that short positions totaling more than $150,000 have been liquidated in the past few hours after MATIC’s price successfully resisted a drop below $0.5. This turn of events has shifted market sentiment toward bullish expectations, marked by a significant increase in MATIC purchasing activity. This trend indicates increasing demand for MATIC at its current price.
Additionally, recent on-chain data from IntoTheBlock has revealed a noticeable increase in high transaction and outflow volume. Specifically, more than 10 million MATIC tokens have been withdrawn from exchanges in the past three days. This move follows the promising developments surrounding Polygon’s new POL token, adding a case for massive accumulation. In terms of market activity, the volatility rate for MATIC has increased to an impressive 47.25%.
This increased volatility signals a rise in trading activity amid bullish sentiment, bringing opportunities for a breakout move in the coming hours.
What’s next for the MATIC Prize?
Over the past few hours, bulls have been trying to validate a clear bullish rally as MATIC’s price struggles to break above the neckline of the resistance level. This indicates that any small price increases will be absorbed by sales. At the time of writing, MATIC’s stock is trading at $0.523, up more than 2.3% in the last 24 hours.
As a sign that the bearish momentum is fading, the bulls should push and maintain the price above the 50-day EMA and $0.54. A successful move could spark a rally towards the EMA200 at $0.57, a point where bearish traders are likely to provide robust resistance.
On the other hand, the bears are aiming to drag the price below the immediate support level of $0.49. If this is achieved, MATIC price could fall towards a crucial support level at $0.42. The bulls are likely to aggressively defend this level as a drop below it could pave the way for a further decline.