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The polygon price jumped 60% in four days between the ‘very large’ matic collection

Polygon (MATIC) took a break from its ongoing Bearish course, posting a sharp rebound in the crypto market this week.

Notably, MATIC’s price rose to $ 0.50 this June 23, its lowest level since April 2021, four days after hitting $ 0.317. It has a profit margin of approximately 60%, which outstrips the performance of Bitcoin (BTC) and Ether (ETH). Same time limit.

MATIC / USD daily price chart. Source: Trading View

Nevertheless, MATIC is still down significantly from its December 2021 peak of $ 2.92, matching the hawkish Fed, which is putting pressure on the overall crypto bear market and risk-on assets.

MATIC “In a Large Storage”

Meanwhile, some of its wealthiest investors continue to collect MATIC tokens despite the general slowdown, on-chain data suggests.

Significantly, according to information provided by Santiment, MATIC is in storage for so-called sharks and whales. It includes polygon token holders ranging from 10,000 to 10 million coins, which have “added 8.7% more to their bags overall” since May 9.

Interestingly, the price of MATIC fell by 50% over the same period, stressing that many whales are confident of its long-term recovery.

Transverse head and shoulders

From a technical standpoint, MATIC / USD seems to be heading towards a new multi-week high.

In detail, the polygon token is coming out of its “inverse head and shoulders” or IH&S model starting June 22. IH&S is a bullish reversal setup, formed after three consecutive bins are created while the price is hanging upside down. The most common support line is the so-called “neckline”

Also, the middle trough (head) of the IH&S is deeper than the other two, called the right and left sides, respectively. Finally, the setup resolves after the price break on the neckline, and as a rule of technical analysis, the distance between the head and the neckline increases.

MATIC / USD Four-Hour Price Chart. Source: Trading View

As a result of its IH&S model, MATIC’s price could rise to $ 0.60 in June or early July, up nearly 20% from today.

Warning to MATIC bulls

Whale buying is not a bullish signal, and the IH&S model has a failure rate of 16.5%. Therefore, further price rally prompts whales to turn MATIC for quick profit, while tight conditions in cryptocurrency and traditional markets can lead to false recovery signals.

Related: ‘Bitcoin Dead’ Google searches reach new all-time highs

Additionally, according to CryptoQuant’s data, the MATIC balance in all crypto exchanges jumped from 1.21 billion to 1.37 billion between May 1 and June 23, indicating additional potential selling pressure in the near term.

Polygon exchange reserve. Source: CryptoQuant

The opinions and opinions expressed herein are those of the authors and do not necessarily reflect the opinions of Every investment and business move involves risk, you must conduct your own research when making a decision.