Polygon (MATIC) deviated from its current bearish trend, making one of the sharpest gains on the crypto market this week.
Notably, the price of MATIC has rebounded to $0.50 on June 23, just four days after it fell to $0.317, its lowest level since April 2021. This equates to an approximately 60% increase, outperforming both Bitcoin (BTC) and Ether (ETH) in the same span.
Nonetheless, MATIC remains much lower than its December 2021 high of $2.92, coinciding with the wider crypto bear market and a hawkish Fed putting pressure on risk-on assets.
Meanwhile, despite the broad slump, some of its wealthiest investors have been amassing MATIC tokens, according to on-chain data.
According to Santiment’s statistics, the so-called MATIC sharks and whales have been accumulating. This includes Polygon token holders with tens of thousands to tens of millions of coins, who have “together added 8.7% more to their bags” since May 9.
Interestingly, MATIC’s price has dropped by half in the same time frame, indicating that many whales are optimistic about its long-term recovery.
From a technical standpoint, MATIC/USD appears to be on its way to a new multi-week high.
Since June 22, the Polygon token has been busting out of its “inverse head and shoulders,” or IH&S pattern. IH&S is a bullish reversal setup formed when the price produces three consecutive troughs while hanging upside down by a common support line known as the “neckline.”
Furthermore, the center trough (the head) of an IH&S is deeper than the other two, known as the right and left shoulders, respectively. Finally, the setup resolves when the price breaks above the neckline and increases by the distance between the head and the neckline, as a rule of technical analysis.
MATIC’s price could rise to $0.60 in June or early July as a result of its IH&S pattern, representing a 20% increase from today.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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