Summary
TLDR: Despite reaching an 11-month high, Polygon’s MATIC price could face resistance from investors selling for profits. Its performance hinges on Bitcoin’s rally, with a positive correlation of 0.9. Failure to breach the $1.18 resistance level could lead to a decline to $0.95.
Key Points
1. The crypto market is currently experiencing a surge in Bitcoin’s price, which has also positively impacted MATIC, with a 57% increase in value over the past month.
2. Despite the optimistic trend, there are concerns about potential selling pressure from Polygon traders, as evidenced by a significant increase in MATIC supply on exchanges, indicating a possible intention to sell for profits.
3. The performance of MATIC’s price is closely tied to Bitcoin’s performance, with a high correlation of 0.9. If Bitcoin continues its rally, MATIC could see further gains, but a failure to breach the $1.18 resistance level may result in a decline to $0.95.