Can MATIC really leverage the hype around Ethereum for more upside?
It has been fairly an attention-grabbing week for Ethereum’s neighborhood because it prepares for a serious improve. In actual fact, its impression has began spilling over into Ethereum layer 2 options comparable to Polygon now. The latter’s native cryptocurrency, MATIC, concluded the week on the again of a big upside on the charts.
MATIC’s bulls famous an 8.5% uptick within the final 24 hours, permitting it to beat resistance on the $0.94-price stage. The altcoin’s value has been hovering inside this value vary this previous week and, the following upside was robust sufficient for MATIC to push again above $1.
MATIC has been buying and selling inside an ascending channel after bottoming out on 18 June. Right here, it’s price stating, nonetheless, that its newest rally got here after interacting with its ascending help line.
Supply: TradingView
MATIC has to take care of the resistance on the $1-price stage, earlier than pushing up additional. Nevertheless, In case it manages to garner sufficient upside, its subsequent resistance zone will probably be above the $1.3-level.
Is that this the beginning of MATIC’s subsequent development part?
A have a look at MATIC’s efficiency over the previous few weeks could assist present a tough thought of what to anticipate, particularly within the short-run.
As an illustration, its imply coin age sentiment has dropped considerably since 18 July. This, across the similar time that MATIC retested its ascending resistance line.
Supply: Santiment
The result after the resistance line retest additionally aligned with the drop within the MVRV ratio throughout the identical interval. This confirmed that MATIC has skilled important outflows since then. Curiously, MATIC’s imply coin age has elevated barely since 9 August, confirming accumulation after retesting its help line. Nevertheless, the MVRV ratio barely noticed a lot upside. Therefore, the most recent uptick won’t be backed by sufficient quantity.
MATIC’s provide distribution confirmed that some whales have been shopping for whereas there may be nonetheless some promote strain coming from others. Addresses holding between 10,000 and 1 million MATIC cash are accountable for the most recent bullish strain.
Supply: Santiment
Addresses holding between 1 million and 10 million cash contributed to the promoting strain within the final 24 hours. Nevertheless, addresses with greater than 10 million cash have the largest affect on MATIC’s value motion.
The outflows from this class of whales have tapered out, paving the way in which for a bullish reduction.
Conclusion
MATIC’s efficiency over the past 3 weeks appeared to recommend that there was not sufficient bearish strain. This consequence additionally backed the prevailing bullish outlook, particularly now that many of the whales are shopping for.
