• Metrics point to this for MATIC’s weekend

  • All eyes were on MATIC as it finally broke above its $1.20 resistance zone after highlighting a 30% increase in the previous week. MATIC holders, on the other hand, were caught off guard when the token fell by 5% at press time, trading at $1.4. Clearly, the excitement surrounding the first-ever crypto token merger, between MATIC and HEZ as Polygon acquired the Hermez Network, did not help the alt’s price.

    Metrics indicate a slow weekend.

    Despite the fact that prices appeared to be recovering on MATIC’s one-hour chart, MVRV (30 day) for the alt, which had peaked on August 13, fell. At the time of writing, MATIC had highlighted some really exciting metrics, which was perplexing to say the least. A decline in MVRV was accompanied by an all-time high level of social volume. Looking at the news surrounding the merger, the increase in social volumes was more or less expected, and it is safe to say that it had little impact on the price.

    Furthermore, there were record altcoin inflows, indicating large exchange deposits. In general, when not preceded by a large outflow, as in the case of MATIC, inflow spikes result in price corrections. A price correction could be on the way for MATIC, but its slight price recovery as of press time indicated otherwise. Having said that, MATIC had a respectable number of active addresses, which was a good sign. The low participation in its network would have been a bearish sign if there had been a drop in the same.

    Notably, the token’s age consumed peaked as well, with MATIC reaching a local price peak of $1.52. While this could be a sign of dormant tokens moving with the intention of driving up prices, it hasn’t been seen since the price dropped.

    Is MATIC going to make a change?

    MATIC’s price trajectory hasn’t been too bad so far, but the token experienced some minor corrections even during the August rally. While a significant increase in metrics such as exchange inflows indicated that a correction was possible, it is unclear whether the correction would be significant. However, at the time of writing, the odds were tipped more toward a minor market correction for the alt.

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