Polygon (MATIC) price is up 16% this week as the market FUD surrounding the SEC lawsuit cools off. On-chain data shows that MATIC is flashing multiple green signals, indicating an impending price recovery. Can the bulls reclaim the $1 milestone?
On June 21, the Polygon team unveiled an AI-based user guide powered by ChatGPT. The AI-trained “Copilot” will help new and existing users navigate the Polygon ecosystem and the broader Web 3 world efficiently.
With Polygon Network Growth on an uptrend, how could the ChatGPT move impact MATIC price in the coming weeks?
Polygon Network Growth is on an Uptrend
Despite the recent 35% price retracement that sent MATIC price to a 2023 bottom, Polygon has continued to acquire new users. The Santiment chart below illustrates that Polygon maintained healthy Network Growth since the June 5 big crash.
On June 4, Polygon recorded 81,741 new wallet addresses. And while the price has dropped below $0.60 for the first in 10 months, the daily Network Growth has consistently stayed above 60,000.
Network Growth assesses the new-user acquisition rate by summing up the daily number of wallet addresses created. When it remains relatively high during a major price retracement, as seen above, it indicates solid network value.
It suggests that beyond price speculation, the core products and services built on the Polygon network remain valuable to users.
And if the ChatGPT-powered “Copilot” is widely-accepted, Polygon could seamlessly onboard more users. The growing network value could soon power ongoing MATIC price recovery above $1.
Crypto Whales are Buying MATIC Again
Furthermore, the renewed confidence shown by MATIC whale investors holders is another indication of an imminent price recovery.
Santiment chart below shows how whales holding 10 million to 100 million MATIC coins have been increasing their holdings this week. Between June 15 and June 22, the whales bought 52 million coins worth approximately $36.4 million.
With such a large inflow of funds within just a week. It’s no surprise that MATIC price has rapidly jumped by 16%.
In summary, the growth in user acquisition and confidence shown by the whales are critical drivers behind the ongoing MATIC price recovery.
The positive perception from both factors can inspire more participants to become bullish and push MATIC toward $1.
MATIC Price Prediction: $1 Recovery Mission
The aforementioned factors suggest that MATIC bulls are on a price recovery mission to reclaim $1. However, MATIC will face significant resistance just above the $0.75 mark.
Here, the cluster of 8,250 investors at the zone could sell some 630 million tokens once MATIC approaches its $0.77 average purchase price. If MATIC can push past that resistance, it could rally toward the $1 milestone.
Yet, the bears could seize control again if MATIC price unexpectedly drops below $0.65. However, 6,260 investors that bought 81.84 million MATIC coins at the maximum price of $0.65 will likely prevent the drop.
If that support level caves, then MATIC could slide further toward $0.60.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.