An important factor on the way from MATIC to the new ATH
The recent sell-offs sparked by Bitcoin’s flash crash have pushed most altcoins into the red. However, there are still exceptional reversals like LUNA while other altcoins like MATIC are rapidly recovering. Establishing a new ATH has been the goal of MATIC lately, and as Bitcoin is slowly recovering, the price of the Polygon token appears to be moving towards an ATH of $ 2.7.
So will MATIC create a new ATH or will the price only recover to the $ 2.44 region like at the end of May?
Price action appears to be fueling the big performance
In connection with the sell-off of the entire market, MATIC lost almost 30% of its value and was only 1.50 USD at times on December 4th. However, the coin quickly rebounded and soon topped $ 2.25. At the time of writing, MATIC is trading at $ 2.46, just below the ATH of $ 2.70 and is expected to create a new ATH.
Although the Relative Strength Index (RSI) of MATIC is up 28.35% on the daily chart, it has yet to reach the overbought zone, which leaves room for further price gains. As MATIC rose above the previous major resistance levels, the RSI rose significantly, triggering an overheated signal.
Additionally, the RSI rebounded quickly after testing the overbought zone in early December, a process that was almost parabolic in early May when MATIC set up an ATH.
Additionally, MATIC’s circulating market cap has finally passed the $ 16 billion mark at press time. Interestingly, the upside seems to be triggered by some positive developments in this Layer 2 protocol.
The source: Messari
Accumulation and support from institutional investors are driving prices
“Dip Buying Sentiment” is an effective support factor for the MATIC price. Specifically, on November 6, 3,000,300 MATIC (then worth 5,802,630 USD) were transferred from Binance to an unknown wallet. This shows how there is an accumulation trend in favor of price.
The number of daily active addresses also increased, while the once slightly decreased active deposits recovered well and underlined the high network activity.
Additionally, while a short-term MVRV is unusual, a long-term MVRV is not anywhere near overheating areas, which is also a good sign.
MATIC started rising last week after Exchange Traded Products (ETP) issuer 21Shares announced that it would be listing a MATIC-linked product on the Euronext stock exchanges in Paris and Amsterdam. However, while the on-chain indicators look bright, the retail audience is still not excited about the coin.
This is also supported by the relatively low trading volume. Therefore, the impetus from the retail crowd will be the decisive factor in the race from MATIC to ATH. Otherwise, the chances of breaking the $ 2.7 mark are less.
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