MATIC Price Prediction: Current Uptrend Is Strong

The price of MATIC, the token powering Polygon, Ethereum’s leading Layer-2 scaling solution, has reached a 60-day high.

The price of MATIC, the token that powers Ethereum’s leading Layer-2 scaling solution, Polygon, has surged to a 60-day high.

Over the past seven days, MATIC’s price soared 28% as investors continue to flock to the altcoin ahead of the upcoming token migration from MATIC to POL.

At the time of writing, MATIC trades at $0.52. The double-digit price hike in the past seven days is partly due to a rise in whale activity during that period. Data from IntoTheBlock showed that the token’s large holders’ netflow rose by 43% during that period.

Large holders are defined as investors that hold more than 0.1% of an asset’s circulating supply. Their netflow measures the difference between the coins they buy and the amount they sell over time.

When an asset’s large holder netflow rises, it signals that whale addresses are accumulating more coins. This is considered a bullish indicator that often leads to a price rally. As retail investors observe large holders increasing their positions, their confidence typically grows, which drives additional buying and can sustain price momentum.

Furthermore, MATIC futures traders have consistently shown a demand for long positions. This is reflected in the altcoin’s positive funding rate since August 17, indicating that traders are willing to pay a premium for maintaining bullish positions in the derivatives market.

When an asset’s funding rate is positive, there is more demand for long positions. It means that more traders are betting on a price rally than those anticipating a decline.

MATIC Price Analysis: Current Uptrend Is Strong

The Average Directional Index (ADX) confirms that the current uptrend is strong, as assessed on a one-day chart at 48.17.

The ADX measures the strength of a trend regardless of its direction. At 48.17, MATIC’s ADX signals that its current trend is very strong.

Moreover, the Directional Movement Index (DMI) setup shows that the trend is bullish. As of this writing, MATIC’s Positive Directional Indicator (+DI) rests above its Negative Directional Indicator (-DI). When the +DI is above the -DI, it suggests that the market trend is bullish and buying pressure is dominant.

Maintaining the current trend could push MATIC’s price to $0.55. However, profit-taking may exert downward pressure, potentially dropping the price to $0.33.

The above is the detailed content of MATIC Price Prediction: Current Uptrend Is Strong. For more information, please follow other related articles on the PHP Chinese website!