MATIC - Time to chill sir
Assets covered: MATIC
Metrics used: Daily Active Deposits, Coin supply on exchanges, MVRV 30D , Social Volume
The past week has been pretty good for the Scaling solutions segment as Loopring (LRC) led the charge. Shortly after it ran, speculators were quick to move on to the next scaling solution that have yet to pump and MATIC was it.
Today we'll be taking a look at what's the current state for MATIC.
MATIC's Daily Active Deposit has hit its highest in a 1 year time frame as more people are depositing to likely take profits at these levels. Sell pressure will be apparent and likely signal a local top pretty soon.
Overall, it's a good sign to see that MATIC's coin supply on exchanges trending downwards for the past year. However, with the recent rise in price, we are seeing a spike in Coin supply on exchanges, naturally so, as speculators take profit.
The last time we had a spike on Coin supply on Exchanges, we saw a -23% correction.
Network Profit/Loss is flashing into the high profits for 2 days now, signalling that there's a strong incentive for holder to take profits at these levels. A correction from such a quick rally is to be expected to settle down the profits.
MATIC's MVRV 30D , which is a decent indicator of short term speculators and their incentive to take profit is at its highest point now, which signals yet again a correction is due.
When a rally like this occurs + MVRV 30D spiking like such, the favor is in the downside.
The crowd chatter around MATIC is spiking up with the rally - usually they come at the top of the price action as everyone just shills it to everyone else while hoping for price to go further and exit. As we mentioned earlier, Daily deposits are spiking and with the spike in crowd mentions, it's very likely that the local top is already here.
Overall, the metrics are showing that a possible local top is in and a correction is due for MATIC. This is not to say that everything turns bearish and MATIC is doomed but rather, it's needing a healthy correction from such price action before deciding where the next move is.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.