Polygon (MATIC) Price Predicted to Hit $1.50 Following Chainlink Partnership

 Key Insights: 

• Polygon (MATIC) price broke the $1 barrier again on Tuesday, Jan 2, as the bulls battle the fierce psychological resistance. 
• MATIC Funded addresses have increased by 2,640 since the Polygon team announced a critical partnership with Chainlink in mid-December. 
• Having breached the $1 area in 3 consecutive days, historical on-chain MATIC accumulation trends now signal that the resistance has weakened. 

Polygon (MATIC) price traded as high as $1.03 on Tuesday, Jan 2, as the bulls broke the $1 barrier for the third consecutive day. On-chain data trends reveal that the recent partnership with Chainlink (LINK) appears to have played a critical role in the ongoing MATIC price rally. 

Can the persistent rise in Polygon Network’s Funded Addresses propel MATIC price above $1.50? 

MATIC Price Broke out After Chainlink Partnership Announcement

MATIC delivered a negative price action between mid-November and the mid-December playing catchup to the rest of the altcoin market. While the likes of Avalanche (AVAX) and Solana (SOL) raced to triple-digit percentage gains, MATIC price sharply declined 25% from $0.98 to $0.72 between Nov 14 and Dec 14. 

But the trend quickly reversed on Dec 14 when the Polygon team announced a vital partnership to integrate Chainlink (LINK) data feeds into the Polygon ZkEVM protocol. 

This partnership with Chainlink effectively allows decentralized finance (DeFi) applications to have access to critical offline price data, according to Polygon co-founder Sandeep Nailwal. 

As part of the partnership agreement, DeFi developers on Polygon zkEVM would have access to Chainlink’s real-time price feeds. As is well-known, Chainlink is a leading blockchain-based oracle network that feeds real-world data to smart contracts.

Hence, this partnership expected to power the development of decentralized exchanges, liquidity protocols, and Real World Assets (RWA) projects on the Polygon chain

With Chainlink Data Feeds on Polygon zkEVM, it is the start of a new era. The combination of Chainlink’s industry-leading data solution and the Polygon zkEVM’s ZK Rollup superpowers will be a game changer for DeFi, making a whole new class of advanced DeFi applications possible.” —Sandeep Naiwal

 

In quick effect, investors reacted positively to the news event, sending MATIC price into a 47% rally which peaked at $1.09 on Dec 27. 

But notably, on-chain data trends observed since the announcement suggest that the price rally may have just begun. 

MATIC Funded Addresses Have Skyrocketed Since Chainlink Partnership 

Looking beyond the price charts, the recent partnership with Chainlink appears to have triggered positive changes in Polygon’s fundamental growth metrics. Indicatively, the number of funded addresses holding MATIC have increased significantly since Dec 14. 

As depicted in the IntoTheBlock chart below, the total number of Funded MATIC addresses stood at 594,160 on Dec 14. But at press time on Jan 2, that figure has increased by 2,640 to hit 596,800 within just 20 days. 

The Funded Addresses metric, also called, Total Addresses with Balance, is a critical measure of network demand, that tracks, in real-time, the total number of wallets that currently hold some units of a cryptocurrency. 

Typically an increase in Funded Addresses is interpreted as a bullish signal, indicating growing adoption of the network’s services and inflow of fresh capital. Importantly, when it increases during a price rally, it indicates that the upswing is being driven my organic network growth rather than mere market speculation. 

Intuitively, this correlation and timing of this rapid rise in Polygon (MATIC) Funded Addresses suggests that Chainlink partnership may have been a driving factor. 

MATIC Price Forecast: Road to $1.50?

Given that Polygon Funded addresses is still on the uptrend, it is an indication that MATIC still maintains a steady flow of demand that could propel it to higher price points in the days ahead. 

The historical accumulation trends illustrated by the Global In/Out of the Money (GIOM) chart below, also affirms this MATIC price forecast. 

It highlights that MATIC now faces minimal resistance on the road to reclaiming $1.50. As seen below, 63,950 addresses that bought 547,840 MATIC at the average price $1.10 pose the most significant resistance above the current prices. 

If the bulls can capitalize on the fresh capital inflows, MATIC price will likely race toward $1.50 area as predicted. 

On the flipside, the bears could regain control if MATIC price wobbles below $0.80. But as seen above, the largest cluster of the current Polygon investors acquired their 5.38 billion MATIC coins at an average price of $0.81. 

To avoid slipping into loss positions, those investors will likely make short covering acquisitions to prevent any potential downsizing below $0.80.