Can MATIC really leverage the hype around Ethereum for more upside?

It has been quite an interesting week for Ethereum’s community as it prepares for a major upgrade. In fact, its impact has started spilling over into Ethereum layer 2 solutions such as Polygon now. The latter’s native cryptocurrency, MATIC, concluded the week on the back of a significant upside on the charts.

MATIC’s bulls noted an 8.5% uptick in the last 24 hours, allowing it to overcome resistance at the $0.94-price level. The altcoin’s price has been hovering within this price range this past week and, the subsequent upside was strong enough for MATIC to push back above $1.

MATIC has been trading within an ascending channel after bottoming out on 18 June. Here, it’s worth pointing out, however, that its latest rally came after interacting with its ascending support line.

Source: TradingView

MATIC has to contend with the resistance at the $1-price level, before pushing up further. However, In case it manages to garner enough upside, its next resistance zone will be above the $1.3-level.

Is this the start of MATIC’s next growth phase?

A look at MATIC’s performance over the last few weeks may help provide a rough idea of what to expect, especially in the short-run.

For instance, its mean coin age sentiment has dropped substantially since 18 July. This, around the same time that MATIC retested its ascending resistance line.

Source: Santiment

The outcome after the resistance line retest also aligned with the drop in the MVRV ratio during the same period. This confirmed that MATIC has experienced significant outflows since then. Interestingly, MATIC’s mean coin age has increased slightly since 9 August, confirming accumulation after retesting its support line. However, the MVRV ratio barely saw much upside. Hence, the latest uptick might not be backed by enough volume.

MATIC’s supply distribution confirmed that some whales have been buying while there is still some sell pressure coming from others. Addresses holding between 10,000 and 1 million MATIC coins are responsible for the latest bullish pressure.

Source: Santiment

Addresses holding between 1 million and 10 million coins contributed to the selling pressure in the last 24 hours. However, addresses with more than 10 million coins have the biggest influence on MATIC’s price action.

The outflows from this class of whales have tapered out, paving the way for a bullish relief.

Conclusion

MATIC’s performance over the last 3 weeks seemed to suggest that there was not enough bearish pressure. This outcome also backed the prevailing bullish outlook, especially now that most of the whales are buying.