Polygon (MATIC) hints at a double bottom reversal from crucial support following an intense correction wave. Is the underlying demand sufficient for the next distribution wave to hit $1?
With the altcoin bull market returning gradually, Polygon is preparing to overcome the bearish influence to restart the bull run. Despite a prevailing downfall for months, the altcoin at crucial support finds a trend reversal opportunity.
So, let’s take a look over the Polygon price analysis to find out if this is a worthy buy-the-dip opportunity.
Polygon Bullish Route from Channel’s Crossroad
Polygon attempts to come back after receiving a massive supply inflow since March 2024. The bulls anticipate a double-bottom reversal for a fresh recovery after hitting the $0.38 support.
However, the intense 68% collapse from its 52-week high of $1.29 reveals a massive bearish influence. Furthermore, the intense correction leads to a solid resistance trendline, maintaining a constant supply inflow.
As per the weekly RSI line, the two dips over the 1-week log price chart reveal a bullish divergence at play. This increases the chances of a bullish comeback in Polygon.
Currently, the MATIC price trades at $0.412, and with a 21% comeback, the weekly candle forms a long tail. Thus, with the growing demand at lower levels, Polygon signals a potential trend reversal.
Polygon Signals Bullish Momentum with Surging Network Activity
According to CryptoQuant, recent on-chain indicators in Polygon reveal a bullish trend with a surge in network activity over the past week.
Transfer volume has increased by 8.15% to hit 72 million MATIC. The number of active addresses has also jumped by 24.04% to 2,696, signaling increased user engagement. Additionally, transactions skyrocketed by 63.21% to 3,401. Essentially, the on-chain data reflects a massive uptick in Polygon network activity.
A Bullish Drive Chances for Polygon
Bulls are on overdrive with the growing underlying demand as market and network metrics see an uptick. Hence, the overhead trendline breakout will indicate a buying opportunity’s price action.
As per the Fibonacci levels, the uptrend in MATIC could reach the 23.60% Fibonacci level at $0.616. Optimistically, a broader market push could pump the altcoin to the $1 mark.