Although Bitcoin recently broke the $ 50,000 mark, its market dominance on the charts has fallen. This seemed like the perfect opportunity for alts to advance to their ATHs. Altcoins such as Cardano, Solana and Terra (LUNA) took advantage of this and reached new highs.
In doing so, however, these alts have also fueled expectations of other altcoins on the market. Polygon’s MATIC is a typical example of the cryptocurrency’s steady upward trend, supported by cruisers in his network.
However, with MATIC facing strong resistance at USD 1.65, it will be crucial for the alternative to rebound above the level and hold it for the days ahead. $ 1.65 acted as strong support during the May-June price rally and a flipping would mean MATIC could make big gains. At the time of writing, the cryptocurrency was ranked 17th after gaining 0.5% daily near that level.
Even so, the altcoin is still around 37% off its ATH. How likely is it that MATIC will hit its ATH next?
Network growth to the rescue
MATIC’s staking engaged balance, a metric relating to the funds that have participated in staking activities within the network, is at an all-time high. This reflected the strength of the network.
In addition, the active addresses of the altcoin have been in a downtrend in recent months. In addition to the latest price gains, MATIC has experienced an impressive breakout from this downward trend.
While this diversion from the downtrend in active addresses is a good sign of an ongoing rally, there appeared to be another sign that came up with the same conclusion.
An inverse relationship can be seen between the NVT ratio of MATIC and the price. It is noteworthy that the NVT ratio has hit lower highs over the past month. While this would generally mean that the network value is not keeping up with the increased usage of the network, in the case of MATIC this is a good sign.
When NVT hit lower highs in April-May this year, the price of the Alt went up and made an ATH. This time the same pattern was visible and if it develops well MATIC could see another ATH soon.
Additionally, the Sharpe Ratio recently recorded an ATH – last seen when the price of MATIC was at an ATH. Ergo, the crypto not only generates positive ROIs, but is now also “risk-free” than ever before in the last three months.
Dealers watch out
Even if most metrics sent bullish signals for the old, a small pullback could be observed in the short term. This could be due to a bearish momentum divergence on the MATIC’s RSI on the 4-hour chart when there is significant resistance.
Additionally, MATIC’s trading volumes were quite low on the daily chart and in order for MATIC to hit its ATH would require a boost from buyers.