MATIC - Possible reversal in the making?
Assets covered: Polygon (MATIC)
Metrics used: Price, Daily Active Addresses, Daily Active Deposits, Supply on Exchanges, MVRV 30D
Following the market-wide crypto meltdown in late May, MATIC managed to surprise everyone by doing a V recovery.... but.. eventually got rejected at the resistance, catching bulls off guard and was on the road to retracing back to where it bounced.
Fortunately, it made a Higher Low for now and even broke through the resistance trendline. Currently it's trying to make $1.50s as support and if it does, a more bullish bias is forming.
That said, the trading volume is still not as impressive as before...but it's a good start for now.
Would like to see more volume coming in for future price spikes.
MATIC's Daily Active Addresses is showing really healthy signs of growth over the past few months and is still remaining consistent this month. It'll be hard to ignore the bullish case for MATIC if the growth continues.
While it's encouraging to see the MATIC broke the resistance trendline, onchain data is still showing a good amount of sell pressure as each rally saw spikes in Daily Active Deposits as well.
This suggests that a good amount of people are using any pump to exit their positions.
During the recent crypto meltdown, MATIC's Supply on Exchanges saw a consistent raise that acted as sell pressure. Since then, it has gradually declined to almost where it bounced off.
This is encouraging but it's still too early to tell whether there'll be more to come as MATIC's price find its direction.
According to MVRV 30D, holders that last moved their MATIC 30 days ago are still on average in a loss. We are definitely no where near the over valued zone near the top and it'll take some time to even get near it.