Polygon price jumps 60% in four days amid 'pretty big' MATIC accumulation

1 week ago 13

Polygon (MATIC) took a interruption from its prevailing bearish course, posting 1 of sharpest rebound successful the crypto marketplace this week.

Notably, MATIC's terms has risen to $0.50 this June 23, 4 days aft hitting $0.317, its lowest level since April 2021. This amounts to astir a 60% gain, surpassing the performances of adjacent Bitcoin (BTC) and Ether (ETH) successful the aforesaid timeframe. 

MATIC/USD regular terms chart. Source: TradingView

Nevertheless, MATIC is inactive down importantly from its December 2021 precocious of $2.92, coinciding with the wide crypto carnivore marketplace and a hawkish Fed putting pressure connected risk-on assets. 

MATIC "in a beauteous large accumulation"

Meanwhile, immoderate of its richest investors person been accumulating MATIC tokens contempt the wide downtrend, on-chain information suggests.

Notably, the alleged MATIC sharks and whales person been successful accumulation, according to information provided by Santiment. That includes the tiers of Polygon token holders ranging from 10,000 to 10 cardinal coins, which person "collectively added 8.7% much to their bags" since May 9.

$MATIC sharks and whales person been successful a beauteous large accumulation inclination for astir six weeks. The tiers of holders ranging from 10k to 10m coins held person collectively added 8.7% much to their bags successful this timespan. https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn

— Santiment (@santimentfeed) June 22, 2022

Interestingly, MATIC's terms has fallen by 50% successful the aforesaid period, underscoring that galore whales are assured astir its semipermanent recovery. 

Inverse caput and shoulders

From a method constituent of view, MATIC/USD appears to beryllium heading toward a caller multi-week high.

In detail, the Polygon token has been breaking retired of its "inverse caput and shoulders," oregon IH&S pattern, since June 22. IH&S is simply a bullish reversal setup that forms aft the terms forms 3 troughs successful a enactment portion hanging upside down by a communal enactment enactment called the "neckline."

Also, an IH&S's mediate trough (the head) is deeper than the different two, called close and near shoulders, respectively. Ultimately, the setup resolves aft the terms breaks supra the neckline, and, arsenic a regularisation of method analysis, rises by arsenic overmuch arsenic the region betwixt the caput and the neckline.

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

As a effect of its IH&S pattern, MATIC's terms could rally toward $0.60 successful June oregon aboriginal July, up astir 20% from today.

Caution for MATIC bulls

Whale buying is not needfully a bullish signal, and the IH&S signifier has a failure complaint of 16.5%. So, a further terms rally could besides punctual whales to flip MATIC for a speedy profit, fixed the tight conditions elsewhere successful the cryptocurrency and accepted markets that could effect successful false betterment signals.

Related: ‘Bitcoin dead’ Google searches deed caller all-time high

Additionally, the MATIC equilibrium crossed each the crypto exchanges has jumped from 1.21 cardinal to 1.37 cardinal betwixt May 1 and June 23, according to data from CryptoQuant, indicating further imaginable sell-pressure successful the adjacent term. 

Polygon speech reserves. Source: CryptoQuant

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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