Altcoin MATIC saw a significant drop in market capitalization from July 12 to August 17. The drop is largely due to Bitcoin’s mid-August crash. In this context, a 42% improvement draws attention. Despite this latest price drop, on-chain measurements suggest that whales accumulating MATIC may be attracting attention. This accumulation trend could position the Layer 2 token for a potential rapid and explosive uptrend, assuming Bitcoin remains stable.
Whales spy on altcoin MATIC amid price drop
Altcoin MATIC was heavily affected by the collapse in the Bitcoin market during the period from July 12 to August 17. Accordingly, it experienced a significant decline, with its value declining by about 42%. However, there are intriguing in-chain metrics. It shows that big investors, often referred to as whales, are showing interest in MATIC. This pattern marks a potential reversal for the token.
Despite the recent price drop, there is a recovery rally for altcoin MATIC. There are promising indicators pointing to this. A divergence between momentum indicators, namely the Relative Strength Index (RSI) and the Awesome Oscillator (AO), is striking. Accordingly, it indicates a bullish trend. This divergence indicates that momentum indicators are making higher lows despite lower price bottoms. It also hints that it signals a potential reversal.
Volatility and breakout expectation
Analyzing the three-day chart, it is clear that the Wave Trend indicator has not yet given a bullish signal in the oversold region. This indicates that the short-term downtrend is continuing. However, the RSI and AO are forming another high low. Accordingly, if the altcoin MATIC price forms another low low, the bullish divergence will occur further, potentially leading to a spiraling price action.
Progress will come if there is a breakout from the price range-bound movement. The price of altcoin MATIC will test the midpoint of its 42% decline at levels such as $0.705, $0.750 or $0.782. If the conditions align, the Layer 2 token will even challenge the $0.814 resistance. It will also result in a total gain of up to 47% from its current value of $0.553. There is a situation that further supports this positive outlook. Increased activity of whales that seem to be accumulating MATIC despite the recent price drop.
Cautious considerations for altcoin
The trend of accumulation and bullish indicators provide optimism for altcoin MATIC. On the other hand, a potential worry scenario lies in a break below the $0.499 support level. Such a result would invalidate the ascension thesis. On the other hand, it will potentially lead to a 42% price drop. Accordingly, altcoin MATic will revisit the $0.315 support.
Despite the recent price drop, altcoin MATIC is showing promising signs of a potential recovery and bullish resurgence. The accumulation of whales and bullish indicators provide promising ground. On the other hand, when we look at cryptokoin.com, it is important to carefully evaluate potential downside scenarios. As the crypto world continues to evolve, MATIC’s performance will be closely watched by investors and enthusiasts alike.
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