MATIC Surpasses $1: Potential Rise and Risks Highlighted
tl;dr
The cryptocurrency MATIC has reclaimed the $1 mark and could rise further according to analysts. Despite possible setbacks, MATIC could gain 20% in the coming weeks and reach $1.20. The Liquidation Heatmap shows that long positions above $1.05 could benefit, while highly leveraged positions between $0.89 and $0.96 could be liquidated.
MATIC over $1 – Is the next push coming?
After an increase of 20% in the last seven days, the cryptocurrency MATIC has reclaimed the $1 mark. The current price is $1.005. However, this may not be the end of the line as some on-chain metrics suggest further upside potential. One of these metrics is circulation. It measures the number of tokens involved in transactions over a certain period. A decrease in circulation could indicate price stability or significant upside potential.
Possible price increase to $1.20
If the decrease in circulation continues, the price of MATIC could rise by another 20%. In this case, Polygon’s native token could reach $1.20 in the coming weeks. From a technical perspective, more and more capital is flowing into MATIC. The Money Flow Index (MFI) was 87.58 at the time of the analysis. This suggests that MATIC is overbought, as the MFI value is above 80.00. This could expose MATIC to a decline.
Long positions have clear advantages
The Liquidation Heatmap shows price zones where over-leveraged traders could lose money. Data from HyblockCapital shows that highly leveraged positions between $0.89 and $0.96 could be liquidated. Above $1.05, however, long positions could benefit from higher prices. However, it might be advisable to avoid high leverage, as market conditions could change from bullish to bearish at any time.
Our Assessment
Despite the positive forecasts, MATIC could pull back before further increases. Therefore, both long and short positions should be cautious when placing large bets. It might not be a good idea to open short positions in MATIC in the short term.
Sources: Victor Olanrewaju, Saman Waris, HyblockCapital, Santiment, TradingView.
| Symbol | MATIC |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Price | $0.49 |
| 24h % | 3.29 % |
| 7d % | -20.14 % |
| 30d % | 12.85 % |
| 60d % | 30.48 % |
| Official Links | Website |
| Socials | Reddit | X |
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