polygon (MATIC) price shows a fundamental and technically optimistic outlook. This outlook is likely to result in an upward momentum in price as a result. Here are the notable developments.
The price of Polygon (MATIC) has risen sharply for the past four months. Benefiting from the improvement in the markets, MATIC rose by an average of 200%. If the indicators create a good result, this uptrend can continue.
MATIC Supply on Exchanges Decreases
The MATIC supply held by all exchanges is at its lowest level since January 2022. According to the report dated October 26, supply decreased to 802.15 million. This decline means that more than 600 million tokens have left the exchanges in the last four months.
As Koinfinans.com previously reported, a drop in the supply of a token on exchanges means that traders want to invest for the long term. Since the token withdrawn from the markets cannot be traded, it has the possibility of resulting in an uptrend.
As can be seen in the MATIC chart shared above, there is an irregular correlation between the price and supply in the stock markets. The decrease in the reserves in the stock markets came to a close period with the price increase.
Reddit NFTs Use Polygon Network
polygon Another clue for the rise of MATIC, the native token belonging to the network, came from the Reddit front. In addition, the increased use of the Polygon network by Fintech companies is another important detail.
Backed by Warren Buffett’s Berkshire Hathaway, Brazilian Nubank chose Polygon to build its native Web3 ecosystem. Since the announcement on October 20, the price of MATIC has increased by about 12% and is trading at $0.95 as of October 26.
The increasing trading volume and popularity of Reddit’s NFTs has also increased attention to the Polygon network.
As a result, from a technical standpoint, MATIC has emerged from a bullish continuation pattern called a bull flag, which is almost double the current valuation of the profit target token, as shown below.
Besides, according to a technical setup shared by analyst Kaleo, MATIC shows similar strength against Bitcoin (BTC).
Referring to the chart below, the analyst shared, “The dominant structure is an HTF (higher time frame) flag going up to May 21, and it looks set to have another leg higher.”
“I expect a small pullback before I go higher/continue,” he added.
The MATIC/BTC setup could push the pair towards 0.000065 BTC in early 2023, a 30% price rally to 0.0000458 BTC.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.