MATIC’s price movement has been nothing short of a nightmare during the previous two months. In just one month, the alt gained about 500 percent, reaching an all-time high of $2.57. However, glory is fleeting, and MATIC’s glory days were short-lived as the coin suffered persistent losses after losses, followed by sideways movement and, of course, more losses. However, in the midst of its repeated market crashes, when most people had given up hope of recovery, MATIC took a step back and rallied by about 40%, surprising the market.
The cryptocurrency has been experiencing minor price drops since June. Its more concerning southbound march began only in mid-July when the alt tested and lingered under the $0.92 support for over a week. After touching lower levels of $0.685, the altcoin came back and soared by more than 41% at press time.
In fact, MATIC was trading at $0.931 with an 8.08 percent weekly increase, which was more than most leading alts save Ethereum.
Furthermore, MATIC’s volume profile revealed buildup, with daily volume three times the daily norm. Furthermore, on July 21, the alt’s actual volume reached $1.32 billion, its biggest level since June 22. The current trade volumes, in particular, were the greatest green peaks since the price advances in June.
The alt’s Relative Strength Index was plainly overbought at its top, and the indicator has been on a continuous fall since then. In fact, the RSI failed to break past the linear downtrend even after the price peaks in May. The rally this time, however, has been stronger than previous rallies, with the RSI finally breaking through this trend on the 12-hour chart.
However, it’s also worth noting what the metrics suggest about MATIC’s recent price rises. Development activity, which has seen a tremendous increase in the last 24 hours, is one metric that jumps out the most. It even got back to where it was at the end of May. In retrospect, it’s also worth noting that Polygon has been integrating its network with Ante Finance and Polycash capabilities.
Even though there has been a significant increase in development activity, active addresses are still below May-June levels. Exchange inflows for MATIC, on the other hand, experienced a significant increase on July 22, approaching levels seen at the end of May. In general, increased inflows to exchanges suggest dumping from individual wallets, indicating that selling pressure is present. Unfortunately, according to the RSI, this did not appear to be the case.
Furthermore, an interesting spike in MATIC’s velocity was the greatest witnessed this year — an indication that the currencies were circulating faster than ever within the network.
With most metrics portraying a positive picture of MATIC recently, it’s safe to say that the alt has been in good shape. To achieve long-term price gains, the alt must break through the $0.926 resistance and convert it to support. Nonetheless, it’s important to remember that the cryptocurrency is only up 8% for the week and is still down 23% in July.