- MATIC price sends bearish signals moments after tagging $1.00.
- Polygon sees an increase in key fundamental factors such as whale activity.
- The resistance at $1.00 weighed down an inverse head-and-shoulders pattern breakout to $1.18.
MATIC price recovery from its floor price of $0.33 did not falter throughout July. The Ethereum Layer2 blockchain solutions provider rallied and pierced through numerous seller congestion zones unbothered by an extremely bearish crypto market. As illustrated in the daily timeframe chart below, the formation of an inverse head-and-shoulders pattern also reinforced the uptrend.
As we will see in a short while, Polygon’s fundamentals also improved immensely during the month, prompting a sustainable move. However, from a technical point of view, the accrued gains could be in jeopardy. The seller congestion at $1.00 will likely drill holes in Polygon’s sailing ship, with a downtrend predicted to stretch to $0.75 and $0.50, respectively.
Polygon whales on a buying spree
On-chain data from Santiment reveals that addresses with between 10,000 and 100,000 MATIC tokens currently account for 4.35% of the network’s total supply, up from 4.16% on July 1. Addresses in the 1 million to 10 million cohort joined the party slightly late, as observed in the chart below but increased their holdings from 5.38% to 6.92%.
The impressive uptake of MATIC tokens implies that investors have a positive long-term outlook. Hence, the possibility of MATIC price recovery regaining momentum and clearing the seller congestion at $1.00.
Polygon supply distribution
Are bears winning the tug of war?
The inverted head-and-shoulders pattern led to a MATIC price rebound from support erected at $0.33. If everything had gone according to plan, a 57.46% breakout target to $1.18 would have been achieved, but the seller congestion at $1 weakened the bulls’ influence.
At the time of writing, MATIC price trades at $0.90 while seeking higher support, preferably at $0.88. The daily Moving Average Convergence Divergence (MACD) may present a sell signal, which to a great extent, will negatively impact its outlook in the coming days.
MATC/USD Daily Chart
Support is envisaged at $0.70, as highlighted by the daily 100 Moving Simple Average (SMA). Other key downhill levels to keep in mind are the daily 50 SMA and the buyer concentration zones at $0.55 and $0.40, respectively.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.