Recently, MATIC experiences surge in bullish sentiment, although the bulls are yet to fully unleash their power. The question is, could this be the prelude to a substantial bullish run? MATIC, the token in focus, saw a significant spike in bullish sentiment as the market starts to recover from the bearish onslaught that dominated in August.
Revival of Bullish Sentiment for MATIC
As August came to a close, MATIC saw a resurgence of bullish sentiment following a predominantly bearish month. This was clearly reflected in the altcoin’s weighted sentiment metric, which saw a dramatic increase in the final three days of the month, reaching a four-week high. This indicates a shift in investor sentiment, leaning towards bullish expectations.
Alongside this rise in sentiment, MATIC’s on-chain volume also saw a substantial increase during this period. This suggests a significant boost in on-chain activity. Notably, this comes at a time when MATIC had just hit its low and had already begun to rebound slightly.
Is MATIC Poised for a Significant Rally?
MATIC’s recent uptick has allowed it to recover from the oversold zone. The last time it found itself in this position was in mid-June, after which the bulls took charge and rallied by over 50%. The current price action suggests a similar scenario could be unfolding.
Moreover, Polygon, the platform behind MATIC, is actively working to strengthen its ties with the Ethereum network. The goal is to streamline yields on deposits in the Ethereum network, thus maintaining Polygon’s appeal to users. However, this utility might not have a major impact on MATIC’s price action, as that is largely influenced by the whales.
What’s Happening on the Whale Front?
According to MATIC’s supply distribution metric, there has been some accumulation recently, particularly among whales holding between 1 million and 100 million MATIC coins. Additionally, addresses holding between 100 million and 1 billion MATIC have also eased off on selling pressure.
While this suggests that some whales have been buying, it also indicates that the selling pressure might not be over yet. Addresses holding over 1 billion MATIC are still contributing to selling pressure, and this group currently controls over 49% of MATIC’s circulating supply.
As we continue to monitor the situation, the cryptoview.io application could be a useful tool for staying updated with the latest developments.
