Here’s Why MATIC’s Price May Be “Cooking Something” Bullish

Here’s Why MATIC’s Price May Be “Cooking Something” Bullish

Key Insights

  • Whales are accumulating MATIC, which is a bullish sign.
  • MATIC's social dominance and weighted sentiment are on the rise, which indicates that investor interest is increasing.
  • MATIC's long/short ratio is also on the rise, which suggests that more traders are betting on MATIC to go up.
  • Polygon has announced the implementation of Polygon 2.0, which could bring new attention to MATIC.
  • MATIC is in a descending channel and has been retesting the upper trendline of the pattern for two months. This suggests that a breakout is imminent.

MATIC has been through some tough times this year, especially after it hit its yearly $1.56 YTD high on 18 February.

MATIC has been falling steeply since February, erasing all the gains it made this year, and now trading at a -30% loss this year, somewhere around $0.5.

However, what if there was reason to believe that the tides may soon change for Polygon/MATIC?

What if now is the time to get some MATIC (it actually is)? Stick around, while we go through a few of the things we know about this cryptocurrency.

Whales Know Something We Don't

This trend is slightly common among whales:

They wait for prices to decline so steeply (and sometimes drag prices down themselves), before buying massively and driving the price up again.

This is what is currently going on with MATIC.

The cryptocurrency's price fell below $0.49 for the first time since May 2022, after Binance announced the delisting of Polygon-based assets from its native NFT Marketplace.

However, something interesting happened after, with the whales.

The supply owned by top-non exchange addresses has been on the rise, as far back as July this year, as illustrated below.

Polygon's supply holdings
Polygon's supply holdings

If the whales are buying MATIC so massively, it means that the current price is low enough to buy at, making MATIC one cryptocurrency with promise in terms of price.

Matic's Weighted Sentiment and Social Dominance Soar

The chart below shows that MATIC's social dominance has been on the rise, despite the market's bearish outlook.

MATIC's weighted sentiment and social dominance
MATIC's weighted sentiment and social dominance

The cryptocurrency's weighted sentiment is also on the rise, showing that investors are genuinely interested in MATIC, and may be investing in it from longer-term perspectives.

MATIC's long/short ratio
MATIC's long/short ratio

MATIC's long/short ratio is also on the rise, indicating that more traders and investors are betting on Polygon going further upwards.

Polygon Finally Announces Polygon 2.0 Implementation

Three Polygon Improvement Proposals (PIPs) for the 2.0 version were officially issued by Polygon [MATIC] developers on September 14, according to this announcement tweet.

According to one of them, MATIC will now be replaced with the new $POL token.

These PIPs also covered general planning for the upgrade and the details of the new Polygon architecture.

The wait is finally over
The wait is finally over

The first suggestion, PIP-17, describes how the POL coin might be implemented on the network. It will take the place of the current MATIC token as the native gas and staking asset of the Polygon ecosystem.

PIP-18, the second proposal, discusses Polygon 2.0's initial phase. It claims that when the 2.0 upgrade occurs, end-users and developers on the current Polygon PoS and Polygon zkEVM chains will not need to change anything.

The third suggestion, PIP-19, requests that a method be used to maintain compatibility with smart contracts on Polygon PoS while switching from MATIC to POL coin on the blockchain.

This means that the current attributes of POL will continue to be the same as those of MATIC.

The new development is bound to bring in some much-needed attention to MATIC, allowing the new $POL token to rally much higher than MATIC ever did.

MATIC's Slow But Steady Climb (Price Analysis)

Has MATIC reached its yearly bottom?

The answer may be yes.

According to MATIC's price chart, the cryptocurrency is in a descending channel and has been retesting the upper trendline of the pattern since mid-July.

MATIC's price action
MATIC's price action

The upper trendline of the channel is validated by MATIC's 50-day MA and is a particularly strong one.

However, MATIC has been retesting this zone for two months now and is likely to enter a breakout very soon.

In all, it might help to be alert, in case MATIC does decide to break out anytime soon.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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