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MATIC’s price movement has been nothing short of a nightmare over the last two months. In just one month, the alt gained nearly 500 percent, reaching an all-time high of $2.57. However, glory is often fleeting, and MATIC’s glory days were cut short when the coin experienced sustained losses after losses, followed by sideways movement and, well, more losses. However, in the midst of its many market crashes, when most people had given up hope of a recovery, MATIC took a step back and rallied by nearly 40%, surprising the market.
Since June, the cryptocurrency has experienced minor price drops. Its more concerning southbound movement, on the other hand, began only in mid-July, when the alt tested and stayed below the $0.92 support for a week. After testing lower levels of $0.685, the altcoin bounced back and rallied by more than 41% at press time.
In fact, MATIC was trading at $0.931 with a weekly gain of 8.08 percent, which was higher than the weekly gain for most top alts except Ethereum.
Furthermore, MATIC’s volume profile revealed accumulation, with daily volume reaching three times the daily average. Furthermore, the alt’s real volume was $1.32 billion on July 21, the highest figure since June 22. Notably, the most recent trade volumes were the highest green peaks since the price increases in June.
The alt’s Relative Strength Index was clearly in the overbought zone at its peak, and the indicator has been on a steady downtrend since. In fact, even after the price peaks in May, the RSI failed to break through that linear downtrend. This time, however, the rally has been stronger than previous ones, with the RSI finally breaking through this trend on the 12-hour chart.
Having said that, it’s also worth noting what metrics say about MATIC’s recent price gains. One metric that stands out the most is development activity, which has seen a significant increase in the last 24 hours. In fact, it touched its May-end levels too. In hindsight, it’s also notable that Polygon has been integrating its network with features like Ante Finance and Polycash.
Despite a significant increase in dev activity, active addresses remain underwhelming and remain below May-June levels. Exchange inflows for MATIC, on the other hand, saw a significant increase on 22 July, nearly matching their levels at the end of May. In general, an increase in exchange inflows indicates dumping from individual wallets, highlighting selling pressure. Unfortunately, according to the RSI, this did not appear to be the case.
Furthermore, an intriguing increase in MATIC’s velocity was the highest level seen this year – a sign that the coins were circulating within the network faster than ever before.
With most metrics painting a positive picture for MATIC, it is safe to say that the alt has been in good shape recently. However, in order to see long-term price gains, the alt must break through the $0.926 resistance and convert it to support. Nonetheless, keep in mind that the cryptocurrency is only up 8% for the week and is still down 23% in July.