The support formed at the price point will likely hedge against any downward push MATIC might face.
Polygon (MATIC) has formed a reliable support base between the $0.94 and $1.11 points as 49,500 addresses purchased 4.65 billion MATIC tokens at the price range, creating a massive demand wall that could serve as opposition against the bears in the event of a downward trend.
Veteran analyst Ali Martinez highlighted the bullish demand wall on his Twitter handle today, citing data from an IntoTheBlock chart.
#Polygon has built a massive support level!
On-chain data reveals that 49,500 addresses purchased 4.65 billion $MATIC between $0.94 and $1.11. This important demand wall may have the strength to keep #MATIC at bay in the event of a correction and serve as a rebound point. pic.twitter.com/cFp1ASnRmB
— Ali (@ali_charts) February 9, 2023
Besides the massive demand wall between $0.94 and $1.11, the chart reveals another important but smaller support between $1.11 and $1.26. Moreover, the resistance points above Polygon’s current value are relatively weak compared to its support points, placing the asset in a more comfortable position than most assets.
Meanwhile, MATIC has retained a 2% gain in the past 24 hours, making it the highest gainer among the top 20 assets within the time frame. The asset is changing hands at $1.34, up 8.56% in the past seven days. With a current market cap of $11.68B, MATIC looks poised to overtake Dogecoin as the ninth biggest asset by valuation.
Crypto analytics account Zytrades noted that MATIC recently broke its yearly trend line resistance following the surge above $1.05. The analyst asserted that the asset could rally to $1.74 if it can break above $1.30. Nonetheless, he noted that if MATIC cannot break through, it could plummet to the $0.95 low.
Despite the asset’s promising position, notable crypto influencer and analyst Crypto Rover disclosed that MATIC had formed a rising wedge at its current point. A rising wedge is formed when the price of an asset is trending upwards, and the movement is contained within a converging upward-slanting channel. Traders interpret this as a bearish signal because it suggests that buying pressure is weakening despite the upward price trend, and a reversal could be brewing.
$MATIC Rising Wedge 🚨 pic.twitter.com/bQSiRJCzDq
— Crypto Rover (@rovercrc) February 8, 2023
NFT Trade Volume on Polygon Reaches ATH
This disclosure comes up shortly after the intraday NFT transaction volume on Polygon surged to $11.4M yesterday, marking an all-time high. According to Chinese journalist Colin Wu, this can be attributed to the Super Bowl-themed NFT collection created by Reddit in collaboration with the NFL. Reddit has so far minted over 1 million NFTs through the partnership.
On February 8, the single-day transaction volume of NFT on the OpenSea Polygon increased to $11.4 million, hitting a record high, mainly due to the Super Bowl NFT avatar minted by Reddit in cooperation with the NFL, which has minted more than 1 million. https://t.co/KuCPyqaC2e https://t.co/FZ5N3oCMyt
— Wu Blockchain (@WuBlockchain) February 9, 2023
A report from NFT Gators two days back revealed that Reddit has so far minted over 9 million NFTs on Polygon, with up to 6.3 million holders. The social news platform had created 4 million NFTs on Polygon from December 12 to February 7.