Given the strong Bitcoin gains, the state of the broader crypto market has been satisfactory to say the least. However, the falling returns on some of the top altcoins like Cardano, Solana, Avalanche, and MATIC have created a sense of insecurity with these altcoins.
Nonetheless, there were subtle signs in pricing structures and the state of on-chain metrics that gave way to some optimism about their development, especially for MATIC.
Price is stuck in a closed channel
MATIC jumped 10% to a three-week high of $ 1.42 on October 8, after hitting lower lows for most of September. There has been talk of Polygon overshadowing the Ethereum network after the former’s active addresses briefly flipped ETHs a week ago. In fact, however, the increasing adoption of its interchain scalability solution is a boon for Ethereum.
The reason for this is that Polygon is an L2 solution that runs on the Ethereum network to process transactions faster and make it easier for Ethereum-based apps to work with other blockchain platforms.
Polygon recently released Swap for Gas on the same day that its price hit a new three-week high. Swap for Gas is a user-friendly solution for the procurement of MATIC in the Polygon Mainnet, which also facilitates bridging. Nonetheless, these developments failed to pull MATIC out of its volatile momentum or push it above the $ 1.5 mark.
Bullish structure in the making?
The positive side of MATIC’s limited movement, however, was that MATIC has developed a bullish structure in terms of pricing. With the 14-day RSI looking bullish above 50 and pointing up, the alt could see further gains once the key resistance at $ 1.5 is broken.
In addition, its price seemed to form a huge triangle. Breaking the trendline and pinning above it could cause a sharp move in price at the base of the triangle.
In particular, with a narrowing symmetrical triangle of the MATIC price, the chances of a breakout also seem to be getting closer.
Network growth fuels the perpetuals market
According to DefiLama TVL’s data in Polygon, they’re just under $ 9 billion, as it was $ 8.43 billion at the time of writing, but the log could hit those levels by the end of October. This growth in the MATIC network can be attributed to the NFT boom and the gaming tick-off.
Other factors like the news from the polygon blockchain used by the Swiss Post also sparked a positive story for the coin amid consolidation.
Notably, MATIC’s share of the total supply of stablecoins held by whales has increased to more than $ 5 million. As the metric neared the ATH level and prices did not show a major increase, it was an indication that whales were piling up, which was a good sign for MATIC’s price in the near future.
In addition, the open interest for the altcoin in the perpetuals market seemed to be increasing steadily. In fact, OI is up 7.15% in one day from press time.
However, active addresses and daily active addresses showed a lack of market participation, while a trend towards low trading volumes also aroused skepticism in the spot market. However, as the network grows and certain metrics converge, a strong push from the bulls could send MATIC to a new ATH.