Polygon traders may be in for a pleasant surprise after MATIC’s bear season

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Poly­gon [MATIC] rest­ed its short-term sup­port last week but failed to gar­ner enough buy pres­sure to sup­port a healthy bounce. Instead, the bulls lost the bat­tle to the bears, lead­ing to a 24% crash in the last 10 days.

MATIC had been trad­ing with­in a mega­phone pat­tern pri­or to the bear­ish per­for­mance since mid-June. It failed to gar­ner enough bull­ish momen­tum towards mid-month, and investors took this as a cue to sell.

As a con­se­quence, MATIC dropped by as much as 24% from 13 September.

Source: Trad­ingView

A 7.16% uptick after recov­er­ing from a week­ly low of $0.69 indi­cates that MATIC might already be head­ed for a bull­ish relief. MATIC’s Mon­ey Flow Index (MFI) tapered out after record­ing out­flows since last week. The low­er sell pres­sure also favored an RSI piv­ot, indi­cat­ing that the bulls were regain­ing some strength.

Although MATIC’s chart looks bull­ish, it does not nec­es­sar­i­ly guar­an­tee that its price action was on the verge of a bull­ish piv­ot. On-chain met­rics did pro­vide a com­pelling out­look. For exam­ple, we observed a sharp uptick in MATIC’s social vol­ume on 21 Sep­tem­ber. This marked the high­est week­ly social vol­ume in the last sev­en days.

Source: San­ti­ment

Fur­ther­more, the price since then adopt­ed a bull­ish per­for­mance, indi­cat­ing that the spike may have been a buy sig­nal. If the oppo­site were true, then MATIC’s down­side would have got­ten stronger.

In addi­tion to the met­rics men­tioned above, MATIC’s veloc­i­ty also reg­is­tered a sharp spike. This con­firmed that there was notable activ­i­ty on 21 Sep­tem­ber. Its net­work growth met­ric piv­ot­ed in favor of an upward tra­jec­to­ry just a day pri­or. Its over­all week­ly per­for­mance also indi­cat­ed that the net­work growth was recovering.

Source: San­ti­ment

Pos­i­tive net­work growth and a strong veloc­i­ty uptick fur­ther sup­port­ed the prob­a­bil­i­ty of a bull­ish out­come. Thus, MATIC may deliv­er more bull­ish­ness as the week­end rolls in. Or this could also be the case if investor sen­ti­ment tran­si­tions in favor of the bulls.

The Poly­gon network’s devel­op­er activ­i­ty met­ric achieved a strong uptick in the last sev­en days. MATIC investors may thus see this as a healthy sign espe­cial­ly com­ing off a bear­ish week.

Source: San­ti­ment

Is this the start of MATIC’s next bullish wave?

The best time for a sub­stan­tial bull­ish uptick is often after a bit of a pull­back. MATIC fits this cri­te­ria and the afore­men­tioned on-chain met­rics fur­ther ham­mered down the bull­ish short-term out­look. Although investors might shift their out­look, it is worth not­ing that oth­er mar­ket fac­tors also played a role in MATIC’s performance.

MATIC might pull off a healthy uptick if the rest of the cryp­to mar­ket recov­ers after the recent bear­ish per­for­mance. Such an out­come would boost investor con­fi­dence. The oppo­site is also like­ly, where FUD preva­lence may damp­en all bull­ish expectations.

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