- MATIC’s price dropped by more than 5% in the last seven days.
- Market sentiment around Polygon turned bullish.
Polygon [MATIC] has been struggling to lift its price for quite some time now. However, while this at first glance looked bearish, things might take a U-turn soon as MATIC was consolidating inside a pattern. A successful test of the pattern might result in a bull rally.
Polygon at a crucial point
CoinMarketCap’s data revealed that MATIC’s price dropped by more than 5% in the last seven days. At the time of writing, MATIC was trading at $0.5778 with a market capitalization of over $5.72 billion.
The magnitude of MATIC’s bearish price action over multiple weeks was better revealed when we checked IntoTheBlock’s data. We found that only 39.8k addresses, accounting for 6% of MATIC investors, were “in the money.”
This meant only 6% of MATIC investors were in profit.
Source: IntoTheBlock
However, World Of Charts, a popular crypto analyst, recently posted a tweet highlighting an interesting development.
As per the tweet, this was the last opportunity for investors to buy MATIC at a lower price as the token was testing a crucial support level of a bullish pattern.
Polygon has been consolidating inside the pattern since 2021.
If MATIC turns bullish and manages to break above the bullish pattern, then investors might witness a massive bull rally. In fact, the rally might as well push MATIC towards $4 or $5 in the coming months.
Source: X
Is a bull rally around the corner?
Since the aforementioned analysis pointed out an opportunity to stockpile MATIC, AMBCrypto checked Santiment’s data to see whether investors were buying the token.
As per our analysis, MATIC’s exchange outflow spiked during the last week.
Additionally, its supply on exchanges dropped while its supply outside of exchanges increased. This clearly indicated a rise in buying pressure.
However, whales didn’t make any major moves, which was evident from the relatively flat supply held by the top addresses graph.
Source: Santiment
It was interesting to note that despite bearish price action, Polygon’s weighted sentiment improved substantially over the last few days. This meant that bullish sentiment around the token increased.
Moreover, its social volume also remained high, reflecting Polygon’s popularity in the crypto space.
Source: Santiment
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The technical indicator MACD displayed the possibility of a bullish crossover. The Money Flow Index (MFI) registered an uptick and was headed further north, indicating a possible price increase in the coming days.
Nonetheless, the Chaikin Money Flow (CMF) remained in the bears’ favor as it moved southwards.
Source: TradingView
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