Polygon (MATIC) has been one of the best performing cryptocurrencies by market capitalization. However, the bearish blues did not completely save its course.
After posting notable gains over the weekend, the crypto market experienced one of its own its greatest folds. Polygon (MAT), like the rest of the market, could not sustain the double-digit gains recently achieved.
Indeed, over the past week, the price of MATIC has appreciated by more than 40%. However, at the time of writing, the bear market has reduced its price by almost 12.56% to graph every day. Despite this, MATIC maintained weekly gains of over 11% over the past seven days.
As the entire crypto market turns red, can the MATIC price maintain its gains recorded last week?
MATIC at the crossroads
Polygon’s price has been affected by the recent crypto market crash amid uncertainty surrounding the news of buying from Binance of crypto exchange FTX.
After posting a multi-month high at $1.30, MATIC finally succumbed to bearish market pressure. From a technical point of view, analysts expected the price to face significant resistance around $0.98.
Interestingly, at the time of filing this article, MATIC was trading at $0.97 as the bulls seem to hold the price above the key resistance at $0.98.
Additionally, data from the IntoTheBlock In and Out of Money About Price indicator suggested that the $0.97 mark could act as key support; indeed, 3,220 addresses hold 222.65 million MATIC at this price level.
At the time of filing this article, MATIC was testing the $0.97 threshold. A drop below this level could see the price drop further towards the $0.91 area, where 17,280 addresses hold over 678 million MATIC.
With the market looking fairly calm, the question is whether MATIC will succumb to downside pressure or recover from this pullback?
Polygon course: can a recovery begin?
The recent increase in the MATIC price has been accompanied by a strong increase in daily active addresses. Data from IntoTheBlock indeed suggests that new addresses as well as active addresses increased by 93.44% and 90.47% respectively on a weekly basis.
Additionally, the Polygon network surpassed 188 million unique addresses on November 7th. Although the MATIC net seemed safe, however, there is a worrying trend in whale escapes.
Over the last 30 days, crypto whale addresses have dropped by 7.69%. At the same time, investors saw a peak of 32.81% and individuals maintained a moderate position with an increase of only 2.96%.
Santiment data also suggests that MATIC addresses holding 10 million coins or more (%) reduced their holdings by 78% at the end of September, falling to around 74% at press time.
Although individuals and investors are taking the lead, crypto whales appear to be skeptical. A return of whales to the scene, however, could contribute a lot of momentum for MATIC. That said, since the price is below the $0.97 support, a drop towards the $0.91 mark would not be surprising.
If the bearish scenario is reversed, Polygon could reach $1 if the market starts to recover.
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