Polygon MATIC price hits $1.17: will its correlation with ETH continue?

With active user addresses constantly increasing and its value correlating Ethereum (ETH) price. Who paints a bullish picture wins Polygon MATIC coin value Remarkable momentum. Does this open the way for a rise, and if so, could we see it reach $1.24?

In this analysis, we will discuss the metrics and data that can help us predict the possible price development of Polygon MATIC.

High number of active addresses

The number of active Polygon MATIC network addresses increased by Nearly 60% in the last 30 days. Historically, we can see a strong correlation between growth in active addresses and price, as shown in the chart below.

On February 6, the network recorded 10,439 active addresses. This number then increased to 15,708 on March 3. The price of the digital currency followed the same approach, rising from $0.83 to $1.14 during the same period, an increase of 37.35%.

Polygon Matic coin price has not reached the $1.14 level since April 2023.

Despite significant growth in the number of active addresses and prices over the past month, the situation is starting to stabilize. Based on historical data, a halt in active address growth often precedes a period of price stability or a possible price correction.

This trend suggests we could see similar movements For the price of POLYGON MATICIt is likely that it will enter a consolidation phase or experience a downward correction in the near future.

Correlation with Ethereum price: Bullish harmony

Historically, prices have generally closely followed Polygon MATIC Ethereum ETH Price, with a correlation coefficient greater than 0.8. This correlation has intensified significantly over the past month. Specifically, the correlation coefficient rose from a modest 0.5 on February 1 to an astonishing 0.95 on March 6.

Considering Ethereum's current bullish momentum, this tight correlation may indicate promising prospects for Polygon MATIC. This could push it towards the above expected price level of $1.24.

On the other hand, a clear contrast emerges when looking at the growth rates of ETH and MATIC over the current year. He got up ETH Price By a factor of 4.5 times higher than MATIC. Given the traditional strong correlation between them, it seems reasonable to predict that MATIC It could have the potential to increase.

Moreover, if we compare the growth MATIC Polygon Price Since the start of the year, with the growth of the ten main cryptocurrencies, excluding memes and stablecoins, we see that they are lagging behind. Nine of these top cryptocurrencies outperformed it and only managed to perform better. Avalanche piece (AVAX).

Polygon MATIC Price Prediction: Is it possible to reach $1.23 by March 15?

Analysis of the IOMAP (Indicator of Winning and Losing Headlines) chart shows that a large number of "winning" addresses indicates strong support at lower price levels. Specifically around the large concentration of buyers at the $1.10 level. If this level holds, it could prevent further declines.

If the price breaks above the resistance level at $1.17, it could be a strong bullish signal, which could cause further upside towards the next resistance levels at $1.21 and perhaps $1.24 or higher . This is because red discs (indicating “losing” addresses) above the $1.14 level will start to turn green (profitable), thereby reducing selling pressure.

If price breaks above current support levels, especially if it falls below the large green disc between $1.10 and $1.14, it could trigger a move lower. This is because breaking an important support level can lead to a loss of confidence and possibly trigger a sell-off.

Additionally, the correlation with ETH could decrease. Even if the strong correlation persists, the price of Polygon MATIC may be affected if the price of ETH enters a downtrend.