Based on Bitcoin’s strong bullish performance, the overall crypto market is also very positive. However, the falling returns on some of the top altcoins like ADA, SOL, AVAX, and MATIC have left them feeling insecure.
4-hour chart | Source: Tradingview
On the other hand, there are small signs in the price structure and status of on-chain indicators that make their progression, especially for MATIC, optimistic.
Price is stuck in a closed channel
MATIC rebounded 10% on October 8 to a 3-week high of $ 1.42 after hitting lower lows for most of September. In reality, however, the increased adoption of this cross-chain scaling solution is definitely a boon for Ethereum.
Because Polygon is a Layer 2 solution that runs on the Ethereum network for faster transaction processing and makes it easier for Ethereum-based applications to work with many other blockchain platforms.
Polygon recently released Swap for Gas on the same day its price hit a new 3-week high. Swap for Gas is a user-friendly solution for MATIC procurement in the Polygon Mainnet, which also facilitates the provision of bridges. However, these developments could not pull MATIC out of the sector-specific momentum or raise the price above the $ 1.5 mark.
Are you working on a bullish structure?
However, the positive side of MATIC’s limited move is that it has created a bullish structure. With the bullish 14-day RSI above 50 and pointing up, the altcoin could continue to rally if it breaks the major resistance level of $ 1.5.
In addition, the price seems to form a huge triangle. Breaking the trendline and pinning above it can trigger a sharp move towards the bottom of the triangle, the USD 3.7-4 zone.
The source: CryptoDream
It is therefore worth noting that as the symmetrical triangle narrows on the MATIC price chart, the breakout chance also seems to be getting closer.
Growth network drives the market permanent contract
According to DefiLama, the Value Locked (TVL) on Polygon at press time is $ 8.43 billion and could be as high as $ 9 billion by the end of October. That MATIC network growth is due to the NFT’s boom. attributed and the gaming industry.
Other factors such as Swiss postal messages using the polygon blockchain have also pushed prices up amid consolidation.
Notably, the percentage of MATIC’s total stablecoin supply held by whales has also increased to over $ 5 million (red line in the graph below). If the index is close to ATH and the price is not rising sharply, it indicates a build-up of whales. This is a good development for the price of MATIC in the near future.
The source: Sanbase
In addition, MATIC’s Open Interest (OI) appears to be growing steadily in the perpetual market. In fact, at press time, open interest was up 7.15% in one day.
Open contract | The source: Coinlyze
On the other hand, the number of active addresses and the daily active addresses indicate a lack of market participation, while the trend of low trading volumes also makes the spot market skeptical. However, with the network showing growth and certain metrics, a strong push from the bulls MATIC could lead to a new ATH.
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