MATIC holders at crossroads can refer to these metrics for clarity

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Polygon’s native cryp­tocur­ren­cy MATIC has done a good job of retain­ing most of its gains since it piv­ot­ed in June. Its price lat­est action intro­duces a degree of uncer­tain­ty espe­cial­ly now that it has been trad­ing along an ascend­ing sup­port line.

MATIC has been trad­ing with­in a mega­phone pat­tern since June. It con­clud­ed the sec­ond half of August with a retest of its ascend­ing sup­port line. There have been some bull­ish attempts since then but have remained with­in the same level.

Source: Trad­ingView

MATIC’s per­for­mance indi­cates a lack of strong demand to bounce back from the sup­port line. It trad­ed near a resis­tance lev­el around the $0.95 and $1 price lev­el. This means any sub­se­quent upside would like­ly expe­ri­ence friction.

The cur­rent uncer­tain­ty in MATIC’s price action reflects con­flict­ed whale activ­i­ty. Some of the whales have been sell­ing while oth­ers have been buy­ing. For exam­ple, address­es hold­ing between 100,000 and 10 mil­lion coins reduced their bal­ances in the last five days.

Source: San­ti­ment

More­over, address­es hold­ing more than 10 mil­lion MATIC tokens increased their bal­ances dur­ing the same 5‑day peri­od. This accu­mu­la­tion has off­set the sell­ing pres­sure from the oth­er whale categories.

Uni­fied or syn­chro­nized buy­ing and sell­ing activ­i­ty from the whales will allow for more price direc­tion clarity.

Whale activ­i­ty is not the only met­ric cur­rent­ly influ­enc­ing MATIC’s price action. For exam­ple, Polygon’s net­work growth slowed down since the start of the month. This might have neg­a­tive­ly impact­ed investors’ sentiment.

Source: San­ti­ment

MATIC’s MVRV long/short dif­fer­ence was ‑43% at press time. A strong recov­ery from its low­est lev­el so far in 2022 but it was still in neg­a­tive ter­ri­to­ry which may favor the bulls.

Conclusion

Despite the improve­ment in MATIC’s MVRV long/short dif­fer­ence, there is still a con­sid­er­able prob­a­bil­i­ty of a bear­ish short-term outcome.

Poly­gon con­tin­ues to pur­sue part­ner­ships and impor­tant devel­op­ments despite MATIC’s cur­rent sit­u­a­tion. Those devel­op­ments accen­tu­ate MATIC’s long-term poten­tial as it con­tin­ues to lever­age robust growth.

Well, the long-term impli­ca­tion is that MATIC will tap into the organ­ic demand linked to the afore­men­tioned developments.

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