101 Interactions, 2 Today
The overall state of the crypto-market has been satisfactory, to say the least, as a result of strong Bitcoin gains. However, the diminishing returns provided by some of the top altcoins, such as Cardano, Solana, Avalanche, and MATIC, have created uncertainty for these altcoins.
Nonetheless, there were subtle signs in price structures and the state of on-chain metrics that led to some optimism about their future trajectories, particularly for MATIC.
Price stuck in a closed channel
MATIC surged 10% to a three-week high of $1.42 on October 8 after making lower lows for the majority of September. Polygon was rumoured to be overshadowing the Ethereum network after its active addresses briefly flipped ETH’s a week ago. However, the increased adoption of its interchain scalability solution is indirectly beneficial to Ethereum.
The reason for this is that Polygon is an L2 solution that runs on the Ethereum network to speed up transaction processing and make it easier for Ethereum-built apps to work with other blockchain platforms.
More recently, Polygon released “Swap for Gas” on the same day its price made a new three-weekly high. Swap for Gas is an easy-to-use solution for sourcing MATIC on Polygon Mainnet that also makes bridging easier. Nonetheless, these developments couldn’t pull MATIC out of its range-bound momentum or take it above the $1.5 mark.
Bullish structure in the making?
The bright side of MATIC’s restricted movement however was that price-wise MATIC has been making a bullish structure. With the 14-day RSI looking bullish standing above 50, pointing upward, the alt may see further gains once the key resistance at $1.5 is breached.
Further, its price seemed to form a giant triangle. Breaking through the trend line and fixing above it could give a strong price movement to the base of the triangle.
Thus, notably with a symmetrical triangle on MATIC’s price getting tighter the chances of a breakout seem to be getting closer too.
Network growth fueling Perpetuals market
As per to data from DefiLama TVL in Polygon just falls short of $9 billion as it stood at $8.43 billion at the time of writing but the protocol could see those levels by the end of October. This growth in MATIC’s network could be credited to the NFT boom and the gaming tick-off.
Other factors like the news of the Polygon blockchain being used by Switzerland’s postal service also pushed a positive narrative for the coin amid consolidation.
Notably, MATIC’s percentage of stablecoin total supply held by whales with more than 5 million USD had been noting a rise. As the metric neared ATH levels with prices showing no major uptick the same was indicative of whales stacking up which was a good sign for MATIC’s price in the near future.
Additionally, Open Interest for the altcoin seemed to be on a steady rise, in the Perpetuals market. In fact, OI saw a 7.15% rise in one day from the time of writing.
However, active addresses and daily active addresses highlighted a lack of participation from the market while a low trade volume trend also presented skepticism in the spot market. Nonetheless, with the network showing growth and certain metrics aligning, a strong push from bulls could send MATIC to a new ATH.