Polygon (MATIC) price has been on the rise since May 17. After a 7% rebound over the last two weeks, MATIC is struggling to break above the $0.90 resistance. With Network Growth rising to a 2-month high, will MATIC attract new demand to push toward $1?
On June 3, Polygon’s newly-launched ZkEVM Roll-up product reached $28 million in Total Value Locked (TVL) as it continued to see increased adoption. This early success of Polygon’s ZkEVM has helped the native blockchain attract new demand in recent weeks.
Meanwhile, a leading videogame maker, EA Sports, recently announced a Nike partnership that will issue NFTs & Digital Collectibles through the Polygon platform.
According to a blog post, the partnership will allow members of.SWOOSH to gain access to Nike-branded digital collectibles, which will be infused into EA games.
.SWOOSH is Nike’s Web3 platform built on Polygon. Hence this upcoming partnership is expected to increase Polygon’s user base.
With a cluster of price-savvy whales now increasing the buying pressure, will MATIC break out of the $0.90 in the coming days?
Polygon is Attracting New Users
In the past week, the proliferation of Polygon ZkEVM appears to be helping the flagship Ethereum-scaling solution attract new users. The Glassnode chart below shows that, on June 3, Polygon recorded its highest Network Growth since April 26, 2023.
Polygon (MATIC) Price Up – June 2023 – Network Growth. Source: GlassnodeNetwork Growth estimates the rate at which a blockchain network attracts new users by summing up the number of new wallet addresses created daily.
When new users flock to a network, it indicates the project is gaining market share. Typically, this has a positive impact on price.
Considering the proliferation of ZkEVM and the newly-inked Nike-EA Sports partnership, Polygon user-acquisition rates could trend further upward in the coming days.
If that happens, MATIC is likely to garner enough momentum to break toward the $1 mark.
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Whales Are Getting in On the Action
On-chain data shows that after a brief spell of profit-taking on the first of June, they have started buying again.
Between June 1 and June 5, whales holding balances of 100,000 to one million MATIC tokens have made significant accumulation. The chart below shows how they added another 3.26 million MATIC to their balances in the last four trading days.
Polygon (MATIC) Price Up – Whales Wallet Balances. May 2023. Source: SantimentAt the current market price of $0.89, the newly-added tokens are worth nearly $2.8 million. This cohort of whales’ historical buy/sell patterns has been closely correlated to MATIC price swings.
This suggests that they could almost single-handedly trigger another MATIC price rally if they continue buying.
MATIC Price Prediction: $1 is a Viable Price Target
The growing network traction and bullish activity among whale investors suggest that MATIC’s price might rise toward $1 in the coming weeks.
However, IntoTheBlock’s Global In/Out of The Money Around Price (IOMAP) data shows that MATIC will face an initial resistance around the $0.94 mark.
As highlighted below, 8,690 investors that bought 3.93 billion MATIC at an average price of $0.94 could mount a sell-wall.
However, if the bulls prevail, the price could rise further toward $1, as expected.
Polygon (MATIC) Price Up – GIOM data. May 2023. Source: IntoTheBlockOn the other hand, the bears could invalidate the bullish MATIC price prediction if it unexpectedly drops below the critical $0.84 support zone.
But, the 15,800 million investors that purchased 275.44 million MATIC at a minimum price of $0.84 will likely prevent that.
Although unlikely, MATIC could retrace further toward $0.77 if that support level is breached.
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