- A double-bottom formation suggested that MATIC could rally 163%, targeting resistance at $1.29.
- Whale transactions spiked in mid-June and July, signaling major moves by large MATIC holders.
Polygon [MATIC] experienced a 3.82% decline over the past week, coinciding with the ongoing MATIC-POL migration. This migration is a key part of Polygon’s 2.0 roadmap, aimed at enhancing the utility of its native token.
The team confirmed that the upgrade, which will replace MATIC with POL, is scheduled for the 4th of September.
The new POL token is expected to play a significant role in the upcoming Polygon staking hub in 2025, including block generation and zero-knowledge proof generation.
Meanwhile, the press time market cap of Polygon was $4.7 billion. MATIC traded at $0.5176, with a 24-hour trading volume of $231,263,385 at the time of writing, reflecting a 0.83% price decline in the last 24 hours.
This ongoing price movement has drawn attention to the potential technical patterns forming in MATIC’s chart.
Potential bullish reversal
Polygon has recently taken liquidity from the old low of $0.4922 from the 11th of September, which squeezed out early buyers before the price found support again at the $0.5270 level.
This movement indicated a potential double-bottom formation, suggesting a possible trade up to the next resistance at $1.2926, representing a 163.71% rally.
Source: TradingView
Additionally, the SEC’s decision to amend its lawsuit against Binance.US, no longer classifying MATIC and several other tokens as securities, has provided a more positive outlook for the token’s future.
Technical indicators and market trends
Technical indicators showed potential for a bullish reversal at press time. The Bollinger Bands were narrowing, indicating reduced volatility and a potential buildup for significant price movement.
Moreover, the price is slightly above the middle band, suggesting a slight bullish bias within a broader range-bound movement.
Source: TradingView
As of this publication, the Relative Strength Index (RSI) was 46.42, below the neutral 50 level, indicating neither overbought nor oversold conditions.
This mid-range RSI level suggested that the market was in a wait-and-see mode, without strong momentum in either direction.
The RSI trend appeared relatively flat, reinforcing the consolidation phase observed in the price action.
The MACD indicator showed a slightly bullish crossover, with the MACD line crossing above the signal line, though both are close to the zero line.
This crossover could be an early sign of a potential bullish reversal, but the weak momentum indicates that any upside movement might be gradual.
Whale moves
Market activity data shows several spikes in whale transactions, particularly around mid-June and late July, indicating significant trading activity among large holders.
Source: Santiment
Concurrently, there has been a substantial rise in the number of active addresses, peaking at over 1 million by late July. This increase highlighted growing user engagement and network activity.
According to IntoTheBlock, 94% MATIC holders were out of the money at press time, with a significant 85% concentration by large holders and a moderate price correlation with Bitcoin [BTC] at 0.51.
Source: IntoTheBlock
Despite recent transaction volumes totaling $308.89 million over the past seven days, netflows on exchanges were a negative $1.01 million, indicating more outflows than inflows.
Read Polygon’s [MATIC] Price Prediction 2024-2025
Market signals were mostly bullish, with exchange signals showing positive bid-ask volume imbalance and smart price, though on-chain signals showed a slightly bearish “In the Money” metric at -3.82%.
Finally, these mixed signals highlight cautious optimism surrounding MATIC’s potential breakout.
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