What’s behind MATIC’s current surge?
Journalist
Posted:
- MATIC’s whale activity increased in the past few weeks.
- As a result, the token’s market capitalization grew by over 50% in the last three weeks.
Polygon [MATIC] has witnessed a remarkable surge in its price and market capitalization over the past few weeks. While the token’s price traded at price levels last observed in July, its market capitalization has grown by 54% in the past three weeks, according to a recent Santiment tweet.
📈 With #altcoin milestones continuing to fire off, #Polygon has steadily risen back to $0.80 and increased its market cap by +54% in just 3 weeks. And in the past 2 weeks, the key wallets holding 100K-10M $MATIC have supported this rise by accumulating. https://t.co/i7lMmBgRbX pic.twitter.com/dWGXJ8CzOK
— Santiment (@santimentfeed) November 9, 2023
The on-chain data provider noted that this upward trajectory has received significant support from key wallets holding substantial MATIC holdings, ranging from 100K to 10M MATIC, which have been actively accumulating the token over the past two weeks.
Since the 28th of October, this cohort has accumulated 42.88 million MATIC tokens worth around $39.56 million.
Also, the count of daily whale transactions valued above $100,000 has steadily increased since the month began. During the trading session on the 8th of November, 161 MATIC transactions exceeding $100,000 were completed. This represented the highest single-day count since July.
MATIC bulls are in full control
At press time, the altcoin exchanged hands at $0.8144, growing by 21% in the last week.
As per AMBCrypto’s analysis, the bullish nature of the current MATIC market was evident by readings from its Awesome Oscillator indicator, which has posted only green histogram bars sitting above the zero line since November began.
When an asset’s Awesome Oscillator is positioned in this manner, it means that the short-term moving average is consistently higher than the long-term moving average (34-period). It also suggests that the asset is in a strong uptrend and that bullish momentum is increasing.
Highlighting the strong buying pressure amongst traders in the spot market, MATIC’s On-balance volume (OBV) has maintained an uptrend since 19 October. At 47.89 billion at press time, it has since gone up by 2%.
When an asset OBV climbs, it means that there are more investors buying the asset than selling it.
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Further, MATIC’s Average Directional Index (ADX) at 51.64 at press time indicated that this uptrend is a strong one. When an asset’s ADX is above 50, it indicates that the market trend is robust and has been sustained over a period of time.
Readings from token’s positive directional index (green) and negative directional index (red), showed the former resting above the latter, suggesting that the bears would find it hard to displace the bulls in the short term.
Source: MATIC/USDT on TradingView
