The MATIC price appreciated by more than 5% in 24 hours, but the resistance of $1 remained a key turning point that has yet to be exceeded.
Fresh gains have revived hopes of a recovery in the crypto market, with altcoin price action turning green on the daily charts. Polygon (MATIC), the tenth ranked cryptocurrency by market capitalization, was trading at $0.9176 at press time, a gain of 5.41% over the past 24 hours.
MATIC’s recent gains have left Polygon investors yearning to get back above the $1 level it lost last month. Can MATIC recover the crucial $1 level before the end of 2022?
Polygon NFT sales spike
Crypto analytics firm Messari recently pointed out that Polygon has seen a 191% increase in NFT sales since late September. Starbucks, Reddit, and Meta began integrating Polygon, which helped grow the platform’s NFT landscape.
Polygon’s NFT growth has eclipsed similar metrics from most of its competitors like Ethereum, Avalanche, and Solana.
A look at the Polygon NFT indicators suggested that NFT trading volume was growing. The past three days have seen a slight increase in the number of NFT trades while the number of unique addresses that purchased over $100,000 worth of NFTs also increased.
Assessing the chances of a MATIC rally
In November, Polygon’s price fell below the $1.00 support zone after hitting a multi-month high of $1.30. However, in early December, daily trading volume increased by 92% to $511 million.
At press time, the MATIC price had broken above the $0.85 support zone and the 100-day simple moving average, suggesting a bullish outlook. Additionally, MATIC’s open interest has jumped over 20% in the past 24 hours.
Despite the spike in open interest, funding rates were still negative, which could cause problems for bulls. However, short liquidations of $1.2 million MATIC have taken place so far today. This could deter bears from opening new risky short positions.
According to the In/Out of Money Around Price metric, MATIC has strong support at the $0.89 mark, where 22,330 addresses hold over 680 million MATIC.
Also, there didn’t seem to be many supply barriers until the $1.04 mark, meaning a move back above $1 is likely. However, a short-term reversal may first cause MATIC to retest the IOMAP level at $0.89.
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