August 22, 2024 – Amidst a broader market downturn characterized by the significant Bitcoin transaction at Mt. Gox and the recent all-time high in gold prices, Polygon (MATIC) has exhibited a strong bullish breakout. This development has sparked renewed optimism among investors and traders.
On August 21st, MATIC broke out of a long-standing consolidation zone and the descending trendline, indicating a potential reversal of the downward price trajectory. The breakout, following a 14-day period of range-bound trading, signifies a significant technical breakthrough.
On-Chain Indicators Point To Bullish Sentiment
Several on-chain indicators support the bullish outlook for MATIC. According to CoinGlass, the open interest in MATIC has surged by over 15% in the past 24 hours, suggesting growing investor and trader interest. Moreover, the prevalence of long-leverage positions over short-leverage positions indicates a bullish bias among traders.
Meanwhile, IntoTheBlock’s data reveals a steady increase in MATIC’s daily active addresses over the past seven days. This growing adoption rate could be a contributing factor to the recent price surge.
Price Performance and Liquidation Risks
At the time of writing, MATIC’s price has surged by over 7.5% in the past 24 hours, trading near $0.4725. The trading volume has also increased by 31%, indicating heightened trader activity.
However, it’s important to note that liquidation risks exist. Coinglass data shows that significant liquidation levels are near $0.442 and $0.496. If MATIC’s price drops below $0.442, nearly $6.77 million worth of long positions could be liquidated. Conversely, a rise above $0.496 could trigger the liquidation of nearly $1.52 million worth of short positions.
Also Read: Altcoin Season Is Here – MATIC Leads The Charge With 25% Gain
Whale Concentration and Price Manipulation Risks
The concentration of MATIC among whales poses potential risks for price manipulation. A small number of whales hold a substantial portion of the total supply, while retail investors have a relatively limited share. This concentration could influence price movements and create volatility.
MATIC’s recent breakout and positive on-chain indicators suggest a bullish trend is underway. However, investors should remain cautious and monitor market developments closely. The potential for price manipulation and liquidation risks should be considered when making investment decisions. As the market evolves, it will be crucial to assess the sustainability of MATIC’s upward momentum.
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.
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