The market has been displaying mixed sentiments as the elite coins continue to show stable trends, with the Midcap altcoins gaining massive momentum recently. Further, October has concluded positively, with Bitcoin price gaining over 28% in value during this month.
Polygon price has also recorded significant gains as the MATIC token has added over 24% in its value this month. Further, the token has recently gained massive attention, resulting in a price jump. But why is MATIC Price pumping so much?
Why Polygon Price Is Surging?
The Whale transactions involving MATIC tokens have increased by over 17% within the past week. The Polygon Network has recorded a 495% surge in its exchange flow, indicating a considerable movement in its volume.
The increase in whale accumulating means the MATIC price has a potential future in the long term perspective.
Polygon has gained significant attention following its plans to upgrade the MATIC token in the coming time. Recently, Polygon Labs shared news about its new sister token, “POL,” which had successfully gone live on the Ethereum mainnet.
MATIC coin is presently the primary currency for the Polygon Network. POL token is said to replace the MATIC gas token in the coming time, which resulted in the coin losing close to 5% initially. Further, the developers plan to make the POL token a single-use crypto for all its Polygon-based systems, resulting in the price to start gaining momentum.
The Polygon token price was trading in a closed range between $0.5510 and $0.5791 since the start of October, following which the price experienced a Death Cross and the price broke down the support level.
The MATIC coin was trading in a consolidated range between $0.5239 and $0.5510 for a week. Following the market pump, the price broke out of its key resistance level at $0.5791 and continued to gain value.
The MATIC price was rejected at $0.6550. The bulls then made multiple attempts, but the coin repeatedly failed to break out as the bears managed to pull back the price. Since then, the price has been trading between the range of $0.6095 and $0.6550.
The RSI displays its averages to constantly hover close to its mid-point for almost a week, indicating increasing price volatility in the market. Further, the chart shows a possibility of a bullish convergence soon, suggesting the price will experience massive buying and selling power soon.
Will MATIC Price Hit $0.700 This Week?
If the Layer-2 bulls push the price above its resistance level of $0.6550, the MATIC price will regain momentum and run toward its upper resistance of $0.700 soon.
Further, if the market continues to trade under a bullish influence, it will rise and test its resistance level of $0.748 in the coming days.
Conversely, if the bears regain power and a price dump occurs, the coin will lose momentum and fall to test its support level of $0.6095 soon. Moreover, if the bears continue to dominate the market, it will prepare itself to continue dipping and test its lower support level of $0.5791 in the coming week.