MATIC, the native token of Polygon, Ethereum’s leading Layer-2 scaling solution, has experienced a significant price surge in recent weeks. The token’s value has reached a 60-day high, driven by increased whale activity and positive sentiment among investors.
Whale Accumulation and Positive Funding Rates
Data from IntoTheBlock reveals a substantial increase in whale activity during the past week. Large holders, those holding more than 0.1% of MATIC’s circulating supply, have been accumulating more coins, as evidenced by their rising netflow. This positive whale activity has boosted investor confidence and fueled further buying pressure.
Additionally, MATIC futures traders have consistently shown demand for long positions. The altcoin’s positive funding rate since August 17 indicates that traders are willing to pay a premium for maintaining bullish positions. This suggests a strong belief in MATIC’s potential for price appreciation.
Technical Indicators Support Upward Trend
MATIC’s Average Directional Index (ADX) confirms the strength of the current uptrend. The indicator is in an uptrend at 48.17, suggesting that the market trend is very strong.
Furthermore, the Directional Movement Index setup shows a bullish bias. The Positive Directional Indicator (+DI) is currently above the Negative Directional Indicator (-DI), indicating dominant buying pressure.
Also Read: Polygon (MATIC) Outperforms The Market, Up 20% In A Week
Price Prediction: Potential for Further Gains
If MATIC can maintain the current trend, it could see a further price increase to $0.55. However, profit-taking may exert downward pressure, potentially leading to a price drop to $0.33.
MATIC’s recent surge is a result of increased whale activity and positive sentiment among investors. The technical indicators also support a bullish outlook for the token. While there is potential for further gains, investors should be aware of the risk of profit-taking and potential price corrections.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.