- Polygon (MATIC) price rises 8.10%, reaching $0.90.
- MATIC market cap surpasses Chainlink, ranked 13th highest.
- Polygon’s active addresses exceed Solana’s, boosting its value.
In the past 24 hours, the cost of Polygon
However, prior to reverting to the value above, the price of MATIC reached $0.93 on January 11. Consequently, due to this surge, the market capitalization of Polygon surpassed that of Chainlink
Within the same period, the price of LINK also rose, but the surge in MATIC’s value was more pronounced. As of the time this was written, Chainlink had a market capitalization of $8.37 billion, whereas Polygon’s market capitalization stood slightly higher at $8.55 billion.
MATIC Rises, Pursues ETH’s Path
The increase in MATIC’s value may be attributed to several reasons. However, the key factor was the growing attraction to the Polygon Proof-of-Stake (PoS) network.
For example, crypto analyst Lark Davis revealed on January 9 that the number of active addresses on the Polygon network exceeded those on the Solana (SOL) network.
The project’s co-founder, Sandeep Nailwal, also emphasized this point. According to him, Nailwal mentioned that the increase in active addresses contributed to Polygon surpassing Ethereum
Nevertheless, the significant correlation between MATIC and ETH also contributed to the latter’s price surge. Coin Edition examined data from Macroaxis and noted that the correlation coefficient for the two digital currencies stood at 0.89.
Over 90 days, ETH provided investors with returns 61% of what MATIC investors received. However, the price movements of both assets were often aligned.
What Awaits Beyond the Recovery?
The rebound in MATIC’s value, as indicated by the 4-hour chart, stood out significantly. This was because earlier efforts to break out upwards had faced resistance. Initially, on January 6, the resistance level repelled the price at $0.84. Then, an analogous situation occurred on January 8.
Nevertheless, on January 10, the upward movement in price confirmed that the bulls had effectively breached the barrier. Moreover, it seems that an additional resistance level exists at $0.91.
If MATIC falls below $0.90, it might return to its nearest support level at $0.81. Conversely, rebounding above $0.91 could initiate a 10% increase, potentially reaching $0.99 or even $1.
According to the Relative Strength Index (RSI), MATIC had not reached overbought territory as the indicator showed a value of 65.31. This indicates that there was substantial buying momentum. It implies that there may still be potential for the price of MATIC to rise further, possibly reaching a new high for the year.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
