The short-term price development of MATIC depends on this

While the weekly prices of several Altcoins recovered strongly after May 19, MATIC is still one of the few Altcoins that continue to decline on the market. Over the past few weeks, MATIC’s pricing structure has seemed completely bearish, but it’s important to note that the asset itself has also risen faster than other altcoins, so corrections are inevitable.

However, there is currently major concern about the possibility of a price drop that could determine the near-term market for MATIC.

Weekly under SMA. shut down 20?

MATIC / USDT billion | Source: trade view

In MATIC’s weekly price review, it is found that the altcoin is testing the 20 simple moving average (SMA 20). In essence, MATIC has not closed its position below the 20 SMA since November 2020, but at this rate the asset will most likely end around the $ 0.75 support previously tested in May.

Sales volume in recent weeks has not really dominated buying pressure, but a closing price below this moving average could trigger another correction down to the critical $ 0.55 support.

However, on-chain data has some advantages.

P.Cheering MATIC price rises

MATIC price (green) and DAA price deviation (purple) | Source: Santiment

According to Santiment, the DAA divergence in the MATIC price is forecasting a strong bullish signal as the daily active counterparts increase in proportion to the lower price development. In the past, such a price-DAA divergence has allowed the asset to move better in the market and achieve higher trading goals.

NVT ratio (MA 7) | Source: Santiment

In contrast to the number of active addresses, MATIC’s NVT quota also reached the same high as at the end of December 2020. Accordingly, the network value is beginning to be overestimated and the transaction volume has to increase in order to balance the structure. The overvalued network, while bearish, involves more corrections on the chart.

Withdrawal Transactions | Source: Santiment

Another big influencing factor is the decline in payouts. An increase in payouts creates an accumulation trend, and such a decrease usually indicates the opposite.

page develop

From a development perspective, there are still some major advantages for Polygon and MATIC, as the digital asset was recently listed by TrustWallet and MyEtherWallet. These integrations will allow the asset to continue to grow in terms of adoption, but for now it’s important to understand that the bullish trigger is linked to Bitcoin’s development.

The hype and buying pressure associated with large altcoins is subsiding. Hence, it is difficult for MATIC to scale unless Bitcoin and ETH break through their respective bullish targets.

You can find the MATIC prices here.

Minh Anh

According to AMBCrypto

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