MATIC could break out if the mood in retail takes off
While most of the top altcoins hit all-time highs when Bitcoin led the market, MATIC was just teasing investors with hopes of a new ATH by testing the $ 2.20 mark. On November 3, MATIC rose to $ 2.15. At the time of writing, the price has fallen more than 17%.
Nevertheless, the altcoin in 20th place has gained more than 1000% since the beginning of the year. Despite the recent correction, many market participants remain optimistic about the future of MATIC. However, there are still a few obstacles that need to be considered.
MATIC 4-hour chart | Source: Tradingview
Retail and Institutional Support
While MATIC hit the $ 2.15 mark earlier this month, it had no impact on TVL. Notably, TVL hasn’t changed much in nearly 2 months at just over $ 4.76 billion at press time.
MATIC Total locked value | The source: Coin98 analysis
One reason MATIC’s TVL is flat is that there aren’t as many new protocols on Polygon coming onto the market as there were a few months ago. However, the number of newcomers does not seem to be decreasing. This can also be seen in the fact that the number of new addresses increased last week and has decreased to an average of 524,000 wallets / day.
But that’s not all. Polygon also needs a boost from retail. On the retail side, the mood was no longer as exciting as before, as MATIC’s trading volume remained low. Whales make up the largest proportion of Polygon’s owners. Or more generally, the market seems to be leaning towards the “strong hand”.
The source: IntoTheBlock
As a result, there is generally a slight shortage of retail FOMO. Surprisingly, however, a sharp surge in retailer numbers in this regard over the past few months could spur retail narrative and rekindle the excitement.
The source: IntoTheBlock
When is the outbreak?
Additionally, as of the time of writing, the BTC-MATIC correlation is approaching an all-time low. A similar pattern emerged during the May rally when correlations decreased along with rising prices.
Correlation with BTC | The source: IntoTheBlock
Put simply, it could be argued that a lower correlation with BTC could benefit MATIC if the retail euphoria is to be blown.
On the price front, the MATIC correction of November 10th offers a good entry point for market participants. In fact, the asset has since hit a higher low. Additionally, the altcoin appears to be forming a bullish triangle in a shorter time frame.
With some recovery underway, a push above $ 2 will reinforce the initial uptrend.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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MATIC could break out if the mood in retail takes off
While most of the top altcoins hit all-time highs when Bitcoin led the market, MATIC was just teasing investors with hopes of a new ATH by testing the $ 2.20 mark. On November 3, MATIC rose to $ 2.15. At the time of writing, the price has fallen more than 17%.
Nevertheless, the altcoin in 20th place has gained more than 1000% since the beginning of the year. Despite the recent correction, many market participants remain optimistic about the future of MATIC. However, there are still a few obstacles that need to be considered.
MATIC 4-hour chart | Source: Tradingview
Retail and Institutional Support
While MATIC hit the $ 2.15 mark earlier this month, it had no impact on TVL. Notably, TVL hasn’t changed much in nearly 2 months at just over $ 4.76 billion at press time.
MATIC Total locked value | The source: Coin98 analysis
One reason MATIC’s TVL is flat is that there aren’t as many new protocols on Polygon coming onto the market as there were a few months ago. However, the number of newcomers does not seem to be decreasing. This can also be seen in the fact that the number of new addresses increased last week and has decreased to an average of 524,000 wallets / day.
But that’s not all. Polygon also needs a boost from retail. On the retail side, the mood was no longer as exciting as before, as MATIC’s trading volume remained low. Whales make up the largest proportion of Polygon’s owners. Or more generally, the market seems to be leaning towards the “strong hand”.
The source: IntoTheBlock
As a result, there is generally a slight shortage of retail FOMO. Surprisingly, however, a sharp surge in retailer numbers in this regard over the past few months could spur retail narrative and rekindle the excitement.
The source: IntoTheBlock
When is the outbreak?
Additionally, as of the time of writing, the BTC-MATIC correlation is approaching an all-time low. A similar pattern emerged during the May rally when correlations decreased along with rising prices.
Correlation with BTC | The source: IntoTheBlock
Put simply, it could be argued that a lower correlation with BTC could benefit MATIC if the retail euphoria is to be blown.
On the price front, the MATIC correction of November 10th offers a good entry point for market participants. In fact, the asset has since hit a higher low. Additionally, the altcoin appears to be forming a bullish triangle in a shorter time frame.
With some recovery underway, a push above $ 2 will reinforce the initial uptrend.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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