Is MATIC price about to double? Polygon's Reddit hype pushes exchange balance to 9-month lows

A crisp rebound successful the Polygon (MATIC) marketplace successful the past 4 months has accrued its terms by 200% erstwhile measured from its June 2022 bottommost of $0.31. And now, the token is showing signs of undergoing different large marketplace rally.

MATIC speech equilibrium hits nine-month low

Notably, the MATIC proviso held by each crypto exchanges fell to 802.15 cardinal connected Oct. 26, its lowest level since January 2022. The plunge came arsenic a portion of a broader downtrend that has witnessed implicit 600 cardinal MATIC leaving exchanges successful the past 4 months, data connected Santiment shows.

MATIC equilibrium connected exchanges versus price. Source: Santiment

A declining crypto equilibrium crossed exchanges is perceived arsenic bullish by the marketplace since traders typically retreat their funds from trading platforms erstwhile they privation to clasp the tokens agelong term.

The MATIC illustration supra shows a akin albeit erratic antagonistic correlation betwixt its terms and proviso connected exchanges. As a result, a play of diminution successful MATIC reserves astatine exchanges has historically coincided with an uptrend successful price, and vice versa. 

Therefore, the latest plunge successful MATIC proviso crossed exchanges hints astatine much upside for the token successful the coming weeks.

Reddit utilizing Polygon to mint collectible NFT avatars

More cues for a imaginable MATIC terms rally travel from the quality of Polygon's adoption by mainstream fintech companies.

Notably, Nubank, a Brazilian neobank slope backed by Warren Buffett's Berkshire Hathaway, picked Polygon to physique its autochthonal Web3 ecosystem. Since the Oct. 20 announcement, MATIC terms has rallied by astir 12% and was trading for $0.95 arsenic of Oct. 26.

Furthermore, the monolithic MATIC outflow from exchanges coincides with the soaring trading and income measurement of Reddit nonfungible token (NFT) avatars. These integer collectibles are minted arsenic NFTs connected the Polygon blockchain.

Reddit NFTs income volumes. Source: Dune Analytics

From a method perspective, MATIC has breached retired of a bullish continuation pattern, dubbed a bull flag, whose nett people sits astir treble the token's existent valuation, arsenic shown below.

MATIC/USD three-day terms chart. Source: TradingView

MATIC besides shows akin spot against Bitcoin (BTC), according to a method setup shared by Kaleo, an autarkic marketplace analyst.

"The predominate operation is simply a HTF [higher timeframe] emblem dating backmost to May of '21 that looks acceptable for different limb higher," the expert wrote portion citing the illustration below.

MATIC/BTC regular terms chart. Source: TradingView

"I'm expecting a tiny retrace earlier breaking retired / continuing higher," helium added.

Related: Bitcoin volition sprout implicit $100K successful 2023 earlier ‘largest carnivore market’ — Trader

The MATIC/BTC setup could propel the brace to 0.000065 BTC by aboriginal 2023 versus the existent terms of 0.0000458 BTC, a 30% terms rally.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.