What are MATIC’s chances of heading to $2 this week?
MATIC’s trade volume was up 35% in the last 24 hours. With the increasing trade volume and market capitalization, it is likely that MATIC’s rally is only getting started. The debate on how effective and scalable sidechains are has recently emerged as trivial. MATIC is currently the most accessible liquid token that represents Ethereum’s current scaling narrative.
With Curve and AAVE already rolling out support, the market capitalization of MATIC is expected to continue rising. The on-chain sentiment is bullish, and concentration by large HODLers is over 90%. This is a positive sign for MATIC’s run to $2 level this week.
The altcoin was trading at $0.585. Additionally, the number of transactions and on-chain activity of MATIC exceeded that of DOT and ADA, the projects that are MATIC’s competitors in terms of market capitalization and this supports the current bullish narrative.
Based on the above chart, the drop in volatility two days ago corresponded with the rise in price, and this has emerged as a trend for MATIC. When the volatility increases, the price remains rangebound or drops. Currently, the increase in volatility is accompanied by an increase in trade volume and this is bullish for the price.
Several projects have joined the Polygon growth story and contributed to the rising TVL. The altcoin continues to remain undervalued at prices below $2. The latest ATH was hit a few hours ago, the price hit $0.744. MATIC’s layer two solution has emerged as a top competitor for Ethereum due to Ethereum’s persistent scaling problems.
This has contributed to the demand across spot exchanges as altcoin prices are recovering from the past weekend’s dip. This is evident from the increased inflow of money, an increase of 3.23% based on data from intotheblock. 100% HODLers are profitable at the current price level, there are sellers taking profit, however, the selling pressure has not affected the price level.
Leading the ETH trend and altcoin rally, the price has resisted selling from both retail traders and HODLers. With a 46% increase in fully diluted market capitalization, the altcoin now ranks 39. Currently, 52% of MATIC’s supply is in circulation and this has offered liquidity for the price to hit the new ATH. Further price rally to the $2 is anticipated based on the above metrics and the on-chain analysis.