MAtPolygon (MATIC), the Ethereum layer-2 protocol, is swimming in gains throughout October. The last seven days alone have seen the coin increase by over 12% and currently sits at a value of $0.941. Polygon is one of the highest-performing coins on CoinMarketCap, with a market cap of just above $8 billion.
Polygon suffered a devastating dip in price this June. However, it has slowly recovered since then, reaching a peak of $1.04 in the middle of August. The MATIC price reached $0.95 on October 26th, close to its August all-time high. This was possible thanks to significant community support, strategic alliances, new product releases, and developer activity.
The coin has now stabilized in price, trading around $0.94 at press time. But this makes it something of an exception in the red crypto market.
MATIC Looks Pretty With Weekly/Monthly Gains
In the past week and month, MATIC has gained more than 12% and 26%, respectively. Polygon’s favourable price performance in this period has been driven by dramatically increased user activity. According to CryptoSlate’s analysis, the number of unique IP addresses on the network has increased significantly, reaching levels not seen since July.
There has been a rise in Polygon’s user base, but this hasn’t resulted in a MATIC sell-off just yet. More and more MATIC is being withdrawn from exchanges, suggesting that users are shifting their attention away from trading. They are now using the tokens on the many dApps and services sprouted on the Polygon platform.
According to CryptoSlate data, the highest exchange outflow for MATIC occurred in April 2021. This was exactly when MATIC’s rapid surge brought its price to an ATH of $2. The growth in Polygon’s user base in October is a direct outcome of the platform’s overall popularity. It has quickly become the preferred platform for various organizations, services, and products, including Reddit and its ambitious NFT plans.
MATIC’s price is currently trading around $0.94. | Source: MATICUSD price from TradingView.com
Polygon (MATIC) Price Analysis: Where Is the Token Headed?
Polygon has been flat since August, but there has been an uptick in bullish activity as of late. After gaining over 12% over the past week, the price is once again testing the critical resistance level at $1. In the event that MATIC can rise beyond $1, this prolonged consolidation period will come to an end.
So far, traders have been successful in keeping the price above the important support level of $0.86. If current momentum continues, we could see a test of the critical resistance as soon as the first week of November. Although the bears were able to push the price down in August, a repeat of that low might be seen as favourable.
The future seems bright for MATIC since its price grew by over 20% in October. This token may enter a continuous rally in November, which may take it to $1.3, which will be the next target. However, this might only happen if the bulls can maintain the strong momentum it has been experiencing throughout the month.
Featured image from Pixabay and chart from TradingView.com