Speculative Traders Bet $45M On Polygon (MATIC) Price Rally

Key Insight:

• Polygon (MATIC) price has gained 17% in the last three weeks, increasing from a 2023 bottom of $0.48 to $0.57 on Thursday, October 5. 
• MATIC Derivatives market data shows investors have recently piled on fresh capital inflows worth $45 million. 
• If the bullish sentiment spreads to the spot markets, MATIC price could hit a new 30-day peak. 

Polygon (MATIC) price dropped to a yearly low of $0.48 on September 11. But three-weeks down the line, the bulls have triggered a sizable recovery, with MATIC prices rising 17% to reclaim $0.56 as of October 5.

Vital derivatives market data shows that the bulls could be bracing for more gains in the coming weeks.

MATIC Futures Markets Have Attracted Fresh Capital Inflows Worth $45M 

Like many other prominent altcoins, Polygon (MATIC) closed September 2023 with a strong price performance. However, speculative traders in the Futures markets are betting big on MATIC to extend the winning streak into October.   

According to derivatives data analytics platform Coinalyze, MATIC Open Interest stood at $77 million on Sept 21. That figure has since risen to hit a 30-day peak of $123 million on October 4. 

This means that traders have added $46 million in capital inflows to the MATIC Futures market within the last two weeks. 

Open Interest sums up the value of the total outstanding derivatives contracts for an asset listed across recognized trading platforms. Strategic investors interpret an uptick in Open Interest as a vital bullish signal.

Essentially, it indicates that existing MATIC traders and increasing their investment, and new market participants are bringing in fresh capital. 

If this historically significant bullish trend persists, it’s only a matter of time before the bullish sentiment spreads to MATIC spot markets.

MATIC Whale Investors Have Increased Their Activity 

If further confirmation of this bullish outlook, on-chain data also reveals that MATIC whales have increased their trading activity this week.

As depicted in the chart below, the Polygon network only registered 8 whale transactions on September 16. But since then, it has consistently increased, reaching 55 whale transactions on October 4. 

The Whale Transactions on-chain metric measures the total number of confirmed trades that exceed the $100,000 threshold on a given day. Typically,  a steady increase in Large transactions impacts prices positively. Firstly, this is because whale transactions boost market liquidity, thus allowing traders to execute orders at favorable prices.

 

More importantly, the increased demand from the whales can influence other retail investors to take bullish positions. 

In conclusion, the $45 million capital inflows in the derivatives markets and increased whale demand could propel MATIC price up the charts in the coming weeks.

MATIC Price Prediction: The $60 Resistance Could Pose a Challenge

Based on the technical analysis, MATIC may face resistance key resistance at the $0.59 level. And if it breaks above this level, it could potentially continue to rise.

On the other hand, if the price falls below the support level of $0.53, the bears could seize control and force a larger downswing.