Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- MATIC was bullish on a lower timeframe.
- Short-term HODLers saw 18% profit from the recent rally.
Polygon’s [MATIC] rally on 20 January posted about 10% gains after the asset rose from $0.9400 to $1.0400. The surge followed Bitcoin [BTC] reclaiming the $22K zone.
At press time, MATIC’s value was $1.0223 and could increase if BTC maintains the $22K level.
Read Polygon [MATIC] Price Prediction 2023-24
Can MATIC target the upper resistance levels?
Technical indicators on the three-hour chart suggested MATIC could target the overhead resistance levels. In particular, the Relative Strength Index (RSI) was at 65, indicating a strong bullish signal.
Similarly, the Chaikin Money Flow (CMF) was on the positive side, showing the current market was strong. In addition, the Directional Movement Index (DMI) showed buyers’ (green line) position in the market was 34, which was above the threshold of 25. This shows buyers had the upper hand at press time.
Therefore MATIC bulls could attempt to target the $1.0512 resistance level if BTC maintains the $22K level. But they must overcome the $1.0264 hurdle.
However, a breach below the immediate $1.0151 support would invalidate the above bullish bias. The downtrend could be stopped by $0.9822 or the demand zone (green) of $0.9400.
How much is 1,10,100 MATICs worth today?
MATIC’s hourly active addresses spiked, and holders recorded gains
According to Santiment, there was a significant spike in active hourly addresses by the time of publication. This showed that more accounts traded MATIC in the past hour, thus boosting the buying pressure and the uptrend momentum. Eventually, this could push MATIC’s prices up.
In addition, MATIC’s Funding Rate exhibited a positive elevation, indicating a demand for the asset in the derivative market. Increased demand from the derivatives market could further propel MATIC to overcome its $1.0264 hurdle and target the $1.0512 resistance level.
Moreover, short-term MATIC HODLers have seen profits for the past 11 days, as evidenced by the positive 30-day MVRV (Market Value to Realized Value) ratio. The gains peaked on 16 January at about 22%.
At press time, short-term holders posted 18% gains from the Friday (20 January) rally, and more gains could be expected if BTC maintains the $22K mark.