It’s been a fascinating week for the Ethereum community as everyone readies for the much-awaited upgrade. Furthermore, its effect has spilled over to ETH L2 solutions like Polygon. That latter’s governance token, MATIC, ended the week with significant uptrends on its charts.
MATIC bulls propelled an over 8.5% surge within the past day, enabling the alt to overpower the resistance level at $0.94. The alt has had its price hovering inside this rage over the last week. Meanwhile, the surge was massive enough to push MATIC beyond $1.
MATIC has traded inside a climbing channel after bottoming on June 18. Meanwhile, beware that its recent rally emerged after the token interacted with an ascending support level. Also, MATIC battled the hurdle around the $1 mark before pushing higher. Further upside momentum would take the alt to the resistance near $1.3.
Is MATIC Welcoming Next Growth Phase?
Evaluating MATIC’s tendencies within the past few weeks could help offer an idea of upcoming possibilities, especially in the near term.
For example, the token’s mean coin age metric has declined significantly since July 18. It was at this time that MATIC retested an ascending resistance level.
The result following the resistance level retest also matched the MVRV ratio plunge over that time. That showed that Polygon saw substantial outflows.
Surprisingly, the asset’s mean coin age increased briefly since August 9, indicating accumulation after a support line retest. Nevertheless, the MVRV barely recorded a steady upside. Thus, enough volume might not have accompanied the recent upsurge.
Polygon’s supply distribution revealed that some large wallet investors have been purchasing as some triggered selling momentum. Addresses with 10K – 1 million tokens contributed to the recent bullish strength.
Wallets holding 1 million – 10 million MATIC tokens accounted for the selling momentum within the past 24 hours. Meanwhile, addresses with over 10 million assets have the highest impact on MATIC’s price tendencies. Outflows from this category tapered out, opening the path for bullish relief.
Final Thought
MATIC’s action within the past three weeks indicates faded bearish momentum. The ongoing bullish outlook also supported this narrative, especially as most whales scoop the alternative token. Active market players waiting for the Merge might ensure stable upticks in alts, including MATIC.
Editorial credit: sdx15 / shutterstock.com