Sotheby’s NFTs could store polygon (MATIC) price image
The May 5 crypto market meltdown saw Polygon’s (MATIC) price fall below $0.90 for the first time since January. But Sotheby’s recent global NFT product launch appears to be reviving investor interest across the network. Is this enough to validate a bullish MATIC price prediction?
On May 1, 2023, Sotheybys, one of the world’s largest art and collectibles brokers, announced the decision to launch an NFT marketplace on the Polygon (MATIC) network and Ethereum.
The product launch will enable crypto investors to conduct peer-to-peer secondary sales of NFT artwork.
Barely a week after the launch of Sotheby’s NFT, Polygon is already witnessing growing demand and attracting new users. Here’s how this could drive MATIC’s price out of the current bearish trend.
Polygon attracts new users
Network growth tracks the number of new wallet addresses created on a blockchain network. After registering a steep decline in April, the Glassnode chart below illustrates how Polygon Network Growth has risen 51%, from 419 to 633 new wallet addresses, between May 6th and May 10th.
Polygon is a popular blockchain network for NFT trading due to its low fees and fast transaction times. It’s no surprise that chain data has recently shown an increase in the number of new users joining the Polygon network.
If this trend continues, demand from the new users could validate the bullish MATIC price prediction.
The demand for MATIC is growing
Moreover, it appears that the influx of new users has led to an increase in investor demand for MATIC. The combined order books for exchanges presented below show that MATIC buy orders have now exceeded the supply in the market.
Currently, investors have placed limit orders to buy 23 million MATIC coins. But to confirm the bullish stance, Polygon traders have only staked 17.5 million coins around today’s prices.
The Exchange Market Depth calculation aggregates all limit orders placed on recognized exchanges by holders of a specific cryptocurrency. And with today’s excess market demand of 5.5 million MATICs, prices are likely to rise as buyers begin to compete.
In summary, if network growth continues to rise, demand is likely to increase further. And finally, the bullish MATIC price prediction is likely to be validated.
MATIC Price Prediction: Bulls have eyes on $0.97
According to the In/Out of the Money data below, the Polygon price is likely to move back towards $0.97. However, for bulls to be confident in the positive MATIC price prediction, it must first break the $0.92 resistance level.
At that point, the cluster of 28,000 investors who paid an average price of $0.92 were able to sell some of their 676 million coins. However, this cluster represents a major resistance for bulls to overcome if the price is to continue to rise.
However, if the bullish Polygon price prediction is validated, the rally could reach $0.97 before meeting more significant resistance. The $0.97 price tag sees a huge amount of holders entered the market.
This cluster has over 4 billion coins. At today’s average price of $0.86, this represents $3.4 billion.
Conversely, if the MATIC price drops below the initial support around $0.83, the bearish trend could last longer than expected. However, the buying wall from the 14,700 investors who bought 204 million coins at the minimum price of $0.84 may appear to prevent the fall.
Although unlikely, failure to hold this support level could cause the MATIC price to fall further towards $0.76.
Disclaimer
In line with Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, objective reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
