Polygon price jumps 60% in four days amid ‘pretty big’ MATIC accumulation #Crypto #cryptocurrency

Posted on

Polygon (MATIC) took a break from its prevailing bearish course, posting considered one of sharpest rebound in the crypto market this week.

Notably, MATIC’s price has risen to $0.50 this June 23, four days after hitting $0.317, its lowest degree since April 2021. This quantities to roughly a 60% acquire, surpassing the performances of even bitcoin (bitcoin-price”>BTC) and Ether (ethereum-price”>ETH) in the identical timeframe. 

MATIC/USD every day price chart. Source: TradingView

Nevertheless, MATIC remains to be down considerably from its December 2021 excessive of $2.92, coinciding with the general crypto bear market and a information/bitcoin-price-rises-to-20-7k-as-fed-s-powell-says-more-rate-hikes-appropriate”>hawkish Fed placing strain on risk-on property. 

MATIC “in a fairly large accumulation”

Meanwhile, a few of its richest buyers have been accumulating MATIC tokens regardless of the final downtrend, on-chain knowledge suggests.

Notably, the so-called MATIC sharks and whales have been in accumulation, in keeping with knowledge supplied by Santiment. That contains the tiers of Polygon token holders starting from 10,000 to 10 million cash, which have “collectively added 8.7% extra to their luggage” since May 9.

Interestingly, MATIC’s price has fallen by 50% in the identical interval, underscoring that many whales are assured about its long-term restoration. 

Inverse head and shoulders

From a technical perspective, MATIC/USD seems to be heading towards a brand new multi-week excessive.

In element, the Polygon token has been breaking out of its “information/pro-traders-look-for-this-classic-pattern-to-spot-bitcoin-price-reversals”>inverse head and shoulders,” or IH&S sample, since June 22. IH&S is a bullish reversal setup that varieties after the price varieties three troughs in a row whereas hanging the other way up by a typical assist line referred to as the “neckline.”

Also, an IH&S’s center trough (the top) is deeper than the opposite two, referred to as proper and left shoulders, respectively. Ultimately, the setup resolves after the price breaks above the neckline, and, as a rule of technical evaluation, rises by as a lot as the space between the top and the neckline.

MATIC/USD four-hour price chart. Source: TradingView

As a results of its IH&S sample, MATIC’s price might rally towards $0.60 in June or early July, up about 20% from right this moment.

Caution for MATIC bulls

Whale shopping for just isn’t essentially a bullish sign, and the IH&S sample has a failure rate of 16.5%. So, an extra price rally might additionally immediate whales to flip MATIC for a fast revenue, given the information/72-of-the-top-100-coins-have-fallen-90-or-more-here-are-the-holdouts”>tight circumstances elsewhere in the cryptocurrency and conventional markets that might end result in information/ethereum-analyst-warns-of-clean-fakeout-despite-30-eth-price-rebound”>false restoration alerts.

Related: ‘news/bitcoin-dead-google-searches-hit-new-all-time-high”>bitcoin dead’ Google searches hit new all-time excessive

Additionally, the MATIC stability throughout all of the crypto exchanges has jumped from 1.21 billion to 1.37 billion between May 1 and June 23, in keeping with data from CryptoQuant, indicating extra potential sell-pressure in the close to time period. 

Polygon change reserves. Source: CryptoQuant

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a call.