- MATIC and BNB have observed high interest from traders, as seen in rising trading volume of the two assets.
- Experts at Santiment predict that profits from Bitcoin are likely to be redistributed to various crypto assets.
- Increase in trade volume is typically followed by a correction in the asset’s price over the short term.
Polygon (MATIC) and Binance Coin (BNB) have witnessed an increase in their trade volume over the past two days. Based on data from crypto intelligence tracker, this increase is typically followed by a correction in the asset’s price.
If history repeats itself, MATIC and BNB prices are likely to experience a pullback in response to the rising trade volume.
MATIC, BNB holders gear up for likely price correction
Experts at Santiment analyzed the trade volume metric for MATIC and BNB, which represents adoption and utility of the tokens among crypto market participants. Both these altcoins have seen a particularly high interest from traders, when compared to other altcoins in the ecosystem.
The interest is evident from the transaction volume chart of MATIC and BNB on Santiment.
MATIC transaction volume vs price
BNB transaction volume vs price
For the two assets, there is a spike in transaction volume between July 10 and 12. The increase is accompanied by a spike in price. However, if the trend repeats, traders are likely to engage in profit-taking and push the asset’s price lower in the short term.
Experts at Santiment weighed in on Bitcoin price action and observed that the asset is trading close to the $31,000 level. Once BTC price crosses this key level, profits could circulate to altcoins like MATIC, BNB and other altcoins in the ecosystem.
MATIC and BNB show major volume increase
Capital inflow fuels demand, and this could catalyze a recovery in altcoin prices. However, it remains to be seen whether Bitcoin price breaks past the $31,000 bullish target.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.