- MATIC’s price has fallen by more than 5% in the past seven days.
- Market sentiment around Polygon turned bullish.
Polygon [MATIC] has been struggling with raising the price for quite some time. However, while this looked bearish at first glance, it could turn into a reversal once MATIC consolidates within a pattern. A successful test of the pattern could result in a bull rally.
Polygon at a crucial point
CoinMarketCaps facts revealed that MATIC’s price has fallen by more than 5% in the past seven days. At the time of writing, MATIC was trading at $0.5778 with a market cap of over $5.72 billion.
The extent of MATIC’s multi-week bearish price action 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 that only 6% of MATIC investors made a profit.
Source: IntoTheBlock
However, World Of Charts, a popular crypto analyst, recently posted one tweet to draw attention to an interesting development.
According to the tweet, this was the last chance 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 within the pattern since 2021.
IIf MATIC turns bullish and manages to break the bullish pattern, investors could witness a massive bull rally. In fact, the rally could just as easily push MATIC towards $4 or $5 in the coming months.
Source:
Is there a bull rally around the corner?
Since the aforementioned analysis pointed to an opportunity to store MATIC, AMBCrypto checked Santiment’s data to see if investors were buying the token.
According to our analysis, MATIC outflows have increased sharply over the past week.
Moreover, the supply on the exchanges decreased, while the supply outside the exchanges increased. This clearly indicated an increase in purchasing pressure.
However, the whales did not make any major moves, which was evident from the relatively flat supply in the top addresses graph.
Source: Santiment
It was interesting to note that despite bearish price action, Polygon’s weighted sentiment improved significantly in recent days. This meant that bullish sentiment around the token increased.
Additionally, social volume also remained high, reflecting Polygon’s popularity in the crypto space.
Source: Santiment
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The technical indicator MACD showed the possibility of a bullish crossover. The Money Flow Index (MFI) registered a rebound and headed further north, indicating a possible price increase in the coming days.
Nevertheless, the Chaikin Money Flow (CMF) remained in favor of the bears as it moved south.
Source: TradingView