Polygon (MATIC) worth reclaimed the $0.90 territory on Nov. 14, bringing its month-to-month positive aspects to fifteen%. On-chain and derivatives knowledge analytics establish the essential bullish indicators that would form MATIC’s subsequent main worth transfer.
MATIC has held onto its place as one of many greatest gainers in November’s high 20 crypto market gainers charts. Right here’s how the Polygon group’s constructive response to the current collaboration with OKX might additional propel MATIC’s worth.
Polygon Partnership with OKX Change Might Spur Additional Positive factors
On November 14, OKX announced the launch of X1, a New zKEVM layer-2 network constructed with Polygon CDK. Though the mission remains to be solely in testnet, MATIC holders sprung into motion to front-run the attainable positive aspects from expanded scalability and elevated adoption.
An OKX assertion famous:
“As a part of the collaboration between OKX and Polygon Labs, OKX will change into a core contributor to Polygon CDK, and can make investments substantial engineering sources to reinforce the know-how stack for Ethereum scaling options.”
Shortly after the announcement. MATIC market worth broke above $1 for the primary time in almost 4 months. Nevertheless, following additional inquest, on-chain data shows that the current MATIC worth rally might be attributed to the rise in community utilization.
Indicatively, the Cryptoquant chart beneath reveals that the Polygon community transaction rely is at the moment trending at its highest stage since September 28.
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The chart beneath vividly illustrates that the Each day Transaction Rely on the Polygon community has been steadily growing this month. On November 14, Polygon recorded 7,819 transactions, 25% increased than final month’s peak of 6,229.
The transaction rely metric represents the overall variety of confirmed transactions involving a specific cryptocurrency on a given day. Usually, a gradual improve in transaction rely, as noticed above, implies rising investor curiosity.
The timing of the uptick additionally means that the OKX partnership spurred natural development in Polygon community utilization this week. Unsurprisingly, the continual improve in Polygon transactional exercise has triggered a 75% worth acquire over the past 30 days.
Futures Traders Have Doubled Their November Bets
Bullish buying and selling exercise amongst Polygon derivatives merchants is one other pivotal issue driving up MATIC costs. In response to the crypto-trading analytics tracker Coinalyze, the overall capital inventory within the MATIC futures markets almost doubled in November.
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The chart beneath illustrates that MATIC’s open curiosity hit a low of $115 million on October 31. However mid-way by November, that determine has skyrocketed above $240 million. This highlights that the overall worth of excellent MATIC futures contracts has elevated by greater than $125 million throughout the first 15 days of November.
Within the context of derivatives buying and selling, open curiosity represents the overall worth of lively futures contracts for a specific asset. Usually, when open curiosity will increase considerably increased throughout a rally, it means that many bullish derivates merchants are doubling down on their lengthy positions.
In abstract, the rising community utilization and the 109% improve in Open Curiosity this month emphasize buyers’ confidence within the ongoing worth uptrend. If these developments persist, MATIC holders might doubtlessly see extra positive aspects within the coming days.
MATIC Price Prediction: Highway to Reclaim $1.50?
From an on-chain standpoint, the rising community exercise and growing capital inflows from derivatives market merchants are important bullish indicators. With each metrics nonetheless trending upward, it places MATIC’s worth in a major place to make one other leg-up.
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The International In/Out of the Cash (GIOM) knowledge, which teams the present MATIC holders in line with their entry costs, additionally confirms this bullish forecast.
Nevertheless, it exhibits that the bulls should first scale the preliminary resistance at $0.10 for the bulls to be assured of reclaiming $1.50. As proven beneath, 34,860 holders had purchased 437.11 million MATIC at a mean worth of $0.99. If these holders exit early, they may derail the MATIC worth rally.
But when the bulls can scale that resistance sell-wall, MATIC worth will likely reclaim $1.50 as predicted.
Nonetheless, the bears might negate the bullish prediction if the MATIC worth dips beneath $0.80. However, in that case, the 62,490 MATIC holders that purchased 4.64 billion MATIC on the minimal worth of $0.805 might mount a help wall. If these buyers can HODL firmly, Polygon will doubtless keep away from a big worth reversal.
Disclaimer
In keeping with the Belief Challenge tips, this worth evaluation article is for informational functions solely and shouldn’t be thought of monetary or funding recommendation. BeInCrypto is dedicated to correct, unbiased reporting, however market situations are topic to alter with out discover. At all times conduct your personal analysis and seek the advice of with knowledgeable earlier than making any monetary choices.