What are the Odds Polygon (MATIC) price breakouts beyond $1?

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.

Monthly NFT Sales Growth by Channel | Source: Messari

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.

MATIC NFT Indicators |  Source: Santiment
MATIC NFT Indicators | Source: Santiment

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.

Open Interest MATIC |  Source: Coinanalysis
Open Interest MATIC | Source: Coinanalysis

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.

Polygon MATIC In/Out of the Money Around Price Indicator by IntoTheBlock
In/Out of Money Around Price | Source: IntoTheBlock

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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