Polygon MATIC Reclaims $1, but Can It Hold out This Time?

Polygon’s MATIC revisits the $1 price point once again after previous failed attempts to hold above.

by Okoya David. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: February 19, 2024 │ 4:00 PM GMT

Little girl in the purple skies, giving Polygon MATIC a ''chef's kiss'' — *Created by Kornelija Poderskytė from DailyCoin*

Polygon MATIC has reclaimed the $1 price point.
The price surge comes amid a recent spike in network activity.
The $1 price point has recently been a significant barrier to MATIC.

Over the past few weeks, Polygon‘s MATIC has mounted a price rally like most crypto assets. While Bitcoin‘s price feats have primarily fueled the recent market rally, MATIC may have found another catalyst. The asset has managed to reclaim range highs amid recent jumps in address activity.

Polygon MATIC Back at $1

Over the past 24 hours, MATIC has jumped 9% from lows of around $0.9167 to clinch the $1 price point for the first time since January 24. The recent price jump comes amid record spikes in network activity, typically indicating a surge in network adoption.

*Polygon daily active address chart. Source:* *Polygon Scan*

The Polygon network has created four new all-time highs in address activity in the past week. In the most recent instance, on Sunday, February 18, Polygon Scan data showed that active addresses edged close to 881,000 at 880,967.

Can Polygon MATIC Hold Above $1 This Time?

In recent months, the $1 price point, representing the top of a multi-month range, has presented an unyielding barrier for MATIC. At the time of writing, however, the asset continues to hold on, though the ongoing formation of what appears to be a doji candle on the daily candle chart indicates an intense battle between bulls and bears.

*MATIC/USDT daily candle chart. Source:* *TradingView*

Bulls would want a clear retest and rejection of this price range to be confident of a continued rally. If MATIC’s price were to fall back into the range, however, the asset could risk a decline to multi-month lows around $0.75.

On the Flipside

In January 2024, on-chain analysts uncovered suspicious MATIC transfers, suggesting that unknown entities were spoofing Polygon metrics.
Despite the recent rally, MATIC is only up about 3% year-to-date (YTD) from an opening price of $0.9706.

Why This Matters

The $1 price point has become critical to watch for Polygon MATIC holders in recent months. The asset’s ability to hold above this level could increase the likelihood of a near-term price rally.