Since pivoting in June, MATIC has been successful in holding on to the majority of its gains. However, there is quite some uncertainty around its current price action.
Polygon’s native cryptocurrency has been trading in a megaphone pattern for over three months. It retested its ascending support line to end the second half of August. Since then, MATIC has made few bullish attempts, but the level remained unchanged.
The altcoin’s performance suggests that there is not enough demand for a bounceback from the support line. Its £0.82 and £0.86 price levels saw it trade close to a resistance level. Any further upswing would therefore probably encounter resistance.
The current ambiguity in price action underscores the fact that MATIC whales are caught in a conflict. While some have been selling, others have been buying. For instance, addresses that had balances between 100,000 and 10,000,000 coins decreased them over the last five days.
Additionally, during the course of the same 5-day period, addresses holding more than 10 million tokens swelled their holdings. The selling pressure from the other whale categories has been countered by this accumulation.
More clarity in price direction will be possible if the whales’ buying and selling activities are coordinated.
The price movement of MATIC is not solely being affected by the whales at this point. For instance, since the start of September, the network’s growth has declined. This could have had a detrimental effect on investor sentiment.
At the time of writing, MATIC’s long/short MVRV difference was -43%. Despite a substantial comeback from its lowest point to date in 2022, it still was on the negative side, hence favouring the bulls.
Furthermore, the improved MVRV long/short difference did not remove the likelihood of a bearish short-term outcome.
Meanwhile, Polygon continues to explore collaborations and significant advancements. This highlights MATIC’s potential over the long run as it continues to benefit from strong growth.