Polygon Price Forecast: MATIC Launches Past $2 While Speculation Mounts
- Polygon continues with the uptrend as technical levels become stronger.
- The number of active users soars, hinting at speculation hitting the roof.
- A correction in newly created addresses could jeopardize the upswing.
Polygon has not slowed down its uptrend despite the widespread correction in the cryptocurrency market over the last few days. Before the breakout, the token had stuck in consolidation between $0.7 and $1. However, gains above the upper limit triggered massive buy orders, paving the way for gains above $2.
Polygon looks toward $3 as speculation rises
According to on-chain data by Santiment, the number of active users has soared in the last week. The active addresses model tracks the number of users interacting on the protocol on a 24-hour basis. Following a dip on May 13 to roughly 3200 addresses per day, an upswing occurred, hitting highs around 13,000.
At the time of writing, the number of active users stands at approximately 9,300 amid a gradual increase as the price rises to higher levels. Note that as the number of addresses surge, speculation for gains to higher levels grows appreciably.
Polygon 24-hour active addresses
Meanwhile, the four-hour chart shows MATIC making headway toward $3. This is after hitting highs above $2. The short-term technical levels, such as the Moving Average Convergence Divergence (MACD), have a vivid bullish outlook, insinuating that buyers have the upper hand.
The uptrend eyeing $3 has also been validated by the Relative Strength Index (RSI), as observed on the four-hour chart. This trend strength indicator is about to hit the overbought area, a move that may trigger massive buy orders before a potential correction comes into the picture.
MATIC/USD four-hour chart
It is worth mentioning that bulls must focus on securing support above $2 to avert a reversal in the near term. Settling above this zone will ensure that buyers concentrate on listing $3 and not playing defense tactics.
Looking at the other side of the picture
The network growth model by Santiment tracks the number of newly created addresses daily. Over the last three days, the metric has experienced a sharp drop, as illustrated on the chart. In other words, the number of addresses joining the network has significantly gone down, which is a bearish signal.
Polygon network growth chart
A sharp drop like this is likely to affect the regular inflow and outflow of tokens on the network. It also shows that the project has massively lost traction in mainstream adoption. If the picture fails to improve, Polygon’s expected uplift to $3 would be sabotaged.