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.
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.
$ Matic Sharks and whales have been in fairly large stocking trends for about six weeks. Holders of the 10k to 10m coin range have added 8.7% more to their bags at this time. pic.twitter.com/lm4au2fWkn
–Santiment (@santimentfeed) June 22, 2022
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.
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.
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