Polygon’s native cryptocurrency MATIC has carried out job of retaining most of its good points because it pivoted in June. Its value newest motion introduces a level of uncertainty particularly now that it has been buying and selling alongside an ascending assist line.
MATIC has been buying and selling inside a megaphone sample since June. It concluded the second half of August with a retest of its ascending assist line. There have been some bullish makes an attempt since then however have remained throughout the similar stage.
Supply: TradingView
MATIC’s efficiency signifies an absence of robust demand to bounce again from the assist line. It traded close to a resistance stage across the $0.95 and $1 value stage. This implies any subsequent upside would possible expertise friction.
The present uncertainty in MATIC’s value motion displays conflicted whale exercise. A few of the whales have been promoting whereas others have been shopping for. For instance, addresses holding between 100,000 and 10 million cash diminished their balances within the final 5 days.
Supply: Santiment
Furthermore, addresses holding greater than 10 million MATIC tokens elevated their balances throughout the identical 5-day interval. This accumulation has offset the promoting stress from the opposite whale classes.
Unified or synchronized shopping for and promoting exercise from the whales will permit for extra value path readability.
Whale exercise isn’t the one metric presently influencing MATIC’s value motion. For instance, Polygon’s community progress slowed down because the begin of the month. This may need negatively impacted traders’ sentiment.
Supply: Santiment
MATIC’s MVRV lengthy/quick distinction was -43% at press time. A powerful restoration from its lowest stage to date in 2022 nevertheless it was nonetheless in damaging territory which can favor the bulls.
Conclusion
Regardless of the advance in MATIC’s MVRV lengthy/quick distinction, there’s nonetheless a substantial chance of a bearish short-term consequence.
Polygon continues to pursue partnerships and essential developments regardless of MATIC’s present scenario. These developments intensify MATIC’s long-term potential because it continues to leverage strong progress.
Nicely, the long-term implication is that MATIC will faucet into the natural demand linked to the aforementioned developments.
