Polygon Price Forecast: MATIC Explodes to $1 Amid Surge in Short Term Accumulation
- Polygon exchange withdrawals rise as investors prefer to hold long-term.
- Higher support is needed to avert a potentially massive correction.
Polygon continued with the rally to a new all-time high following a short consolidation period. Support at $0.68 ensured that bearish advances are kept at bay. On the upside, a break past the 50 Simple Moving Average (SMA) increased investor confidence for gains past $1. MATIC extended the bullish action beyond $1 but stalled at $1.06.
Spike in exchange withdraws suggests reflects increase in long term holders
According to the data by Santiment, behavioural analytics platform investors are removing their MATIC out of exchange wallets at a high rate. The exchange outflow model reveals the number of MATIC tokens withdrawn from known exchange wallets daily. This model modifies the figures to exclude exchange-to-exchange transactions.
A sudden increase in the exchange outflow metric hints at a short-term accumulation pattern, the effect of which is increasing demand coupled with low supply. In other words, this is a massive bullish signal.
Polygon exchange outflow chart
The number of new addresses created on Polygon every day has significantly gone up as per the data by Santiment’s network growth model. Towards the end of April, these addresses had soared to roughly 6,100 but slumped to around 2,400 addresses on May 8.
Intriguingly, the last few days have seen the addresses rise to approximately 3,000. As the network growth recovers, the network adoption gains traction, and the price tends to rally.
Polygon network growth
Polygon trades at $0.91 when writing, following a correction from the all-time high. Buyers are keen on securing higher support amid the retreat. The 50 SMA on the four-hour chart is one of the most vital anchor areas. Holding above this zone would ensure that bulls are ready for an upswing to highs above $1.
MATIC/USD four-hour chart
It is worth mentioning that the Moving Average Convergence (MACD) indicator has a bearish outlook. If the MACD line continues with the downward movement and crosses under the signal, bearish advances will gain momentum. Moreover, support at the 50 SMA must hold; otherwise, losses may extend to $0.68 and $0.6, respectively.