Polygon network and MATIC digital currency became the hot topic of market discussion with its double-digit price growth last week. This growth in value caused this coin to return to the top ten digital currencies once again. At the time of writing, Capmatic’s market cap is over $9.9 billion.
According to Valx and quoted by Ambcrypto, an interesting event happened before the recent price increase of Matic. According to Sentiment website, on the morning of January 25, the biggest transaction of this year took place in Matic. Shortly after this transfer, the rapid movement of the price of matic currency began.
The amount transferred in this transaction was worth 56 million dollars before the price jump. The destination address also hosts 585 thousand Ether.
Since the main reason for the current wave has been the increase in the activity of digital currency whales, a look at the internal state of the Polygon network and the analysis of the currency matic can help investors to better understand the possibility of a change in the trend.
At the time of writing this article, Matic stocks in the exchanges are decreasing, which is considered a positive signal because it reduces the selling pressure. The same was true for the net rate of entering and exiting the exchanges.
The price volatility increased sharply within a month. The graph of the Sentiment site reports a sharp increase in the MVRV ratio of the network. This increases the chances of the continuation of the upward trend.
In addition, the daily trading volume of Matic that closed in profit was also positive.
Apart from the mentioned criteria, several other factors also pointed to the continuation of the process. The data from Difai Lama site shows that the Total Locked Capital (TVL) of Paligan Network has been steadily increasing in the past few weeks. Also, it was recently revealed that the Polygan network has recorded a better performance than the Ethereum network in terms of the number of daily active addresses.
The daily chart of Matic currency also looks very bullish. For example, the EMATIC ribbon indicator gave a bullish signal because the 20-day EMA is above the 55-day EMA. The MACD indicator also had a similar story.
Despite these issues, the Relative Strength Index (RSI) is in overbought territory, which may limit upside potential.
Will the increase in the price of Matic stop? The first time in the blog Valx. appeared.
