Polygon (MATIC) appears to be on the verge of an uptrend as the number of whale addresses holding the prominent Layer 2 (L2) token is starting to rise. An analysis of the token’s movements on a daily chart also indicates a gradual resurgence of bullish activity in MATIC’s market.
Polygon Whales Reveal the L2 Token's Potential
A review of the distribution of MATIC's supply revealed a rise in the number of whales possessing more than 100,000 tokens. Only this past week has seen a 1.2% increase in this investor cohort.
This group of MATIC investors held 77.41% of the 10 billion MATIC total circulation supply as of the time of writing.
The value of MATIC has increased by 3% in the last week due to the increase in whale activity, defying the overall market trend of fall during the same period.
The profitability of the altcoin transactions around this time may have contributed to the increase in the MATIC whale count. Furthermore, an evaluation of the daily profit-to-loss ratio of MATIC transaction volume (using a seven-day moving average) was 1.03.
According to the value of this indicator, there have been more lucrative MATIC transactions over the last seven days than losses-returning ones. According to the statistic, 1.03 MATIC transactions resulted in a profit for investors for every transaction that ended in a loss.
MATIC Price Forecast: Strengthening Bull Market
At the time of publication, MATIC's Chaikin Money Flow (CMF) value was 0.07, indicating an upward trend. This indicator calculates the amount of buying and selling pressure influencing the price movement of an item.
When its value is positive, as it is above, it indicates that buyers are in charge because more money is flowing into the asset on up days than on down.
A combination of the altcoin's price increase and positive CMF reading for ADA indicates a rise in bullish sentiment. Furthermore, the MACD line of MATIC's Moving Average Convergence Divergence (MACD) indicator was set to cross above the zero line at the time of publication, according to readings from the indicator.
An asset's MACD line indicates a change in momentum from bearish (downward) to bullish (upward) when it crosses above its zero line. The fact that the moving average is closing the gap with the current price suggests that it may be headed higher.
Should this trend continue and the bulls continue to dominate the market, MATIC's price could increase to $0.83. But even a small increase in selling activity could undermine this prediction and drive up the price of the token.
May 2024, Cryptoniteuae