Home » Is MATIC price about to double? Polygon’s Reddit hype pushes exchange balance to 9-month lows

Is MATIC price about to double? Polygon’s Reddit hype pushes exchange balance to 9-month lows

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Polygon’s sharp rebound (matic) market has seen a 200% increase in price over the past four months, measured from a low of $0.31 in June 2022. And now the token is showing signs of another big market upswing.

MATIC FX Balances Hit Nine-Month Low

Notably, the MATIC supply held by all cryptocurrency exchanges fell to 802.15 million on October 26th. This is the lowest level since January 2022. The plunge comes as part of a broader downtrend that has witnessed over 600 million of his MATIC exit the exchange over the past four months. , data at the Santimento show.

MATIC balance of exchange versus price.Source: Santimento

Declining crypto balances across exchanges seem to be strong It varies from market to market as traders usually withdraw funds from the trading platform when they want to hold their tokens for a long time.

The MATIC chart above shows a similar, albeit irregular, negative correlation between price and supply on exchanges. Consistent with the upward trend in prices and vice versa.

The recent plunge in MATIC supply across exchanges therefore suggests that the token will rise further in the coming weeks.

Reddit uses Polygon to create collectible NFT avatars

News of Polygon’s adoption by mainstream fintech companies provides further clues to MATIC’s potential price increase.

In particular, Nubank, a Brazilian neobank backed by Warren Buffett’s Berkshire Hathaway, chose Polygon building a native Web3 ecosystem. Since the Oct. 20 announcement, MATIC’s price has risen nearly 12% on his, trading at $0.95 as of Oct. 26.

Additionally, the massive outflow of MATIC from exchanges coincides with surges in trading and sales volumes. Reddit’s Non-Fungible Token (NFT) AvatarThese digital collections will be created as NFTs on the Polygon blockchain.

Reddit NFT sales volume.Source: Dune Analytics

From a technical perspective, MATIC has broken out of its bullish continuation pattern, with its profit target set at almost double the token’s current valuation, as shown below.

3-day price chart for MATIC/USD.Source: Trading View

MATIC shows similar strength against Bitcoin (Bitcoin), according to a technical setup shared by independent market analyst Kaleo.

“The dominant structure is HTF [higher timeframe] The flag, which dates back to May 2021, looks poised to take another notch higher,” analysts said. I have written Quoting the chart below.

MATIC/BTC daily chart.Source: Trading View

“I’m hoping it will back off a bit before breaking out/will continue higher,” he added.

Related: Bitcoin Will Exceed $100,000 In 2023 Before ‘Biggest Bear Market’ — Trader

The MATIC/BTC setup could push the pair to 0.000065 BTC by early 2023 against the current price of 0.0000458 BTC, a 30% price increase.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.