- Polygon's winning streak continues despite market instability affecting Bitcoin.
- The ongoing uptrend is well-grounded in the foundation of solid technical levels.
Polygon is up a whopping 10% despite the bloodshed in the cryptocurrency market. In the previous seven days, the token has accrued 118% in gains and 545% in the last 30-days. MATIC is exchanging hands at $2.35 at the time of writing and has attracted slightly above $11 billion in trading volume across exchanges.
Technical levels align for another upswing
The Relative Strength Index (RSI) sends a bullish signal on the four-hour chart. This trend strength indicator was recently rejected from the overbought region but secured support at 60. At the time of writing, the indicator points upward as a sign of a growing bullish grip.
Simultaneously, the Moving Average Convergence Divergence (MACD) hints at the uptrend remaining intact in the coming sessions. According to the technical picture, buyers currently have the upper hand.
The bullish outlook has been validated by the MACD line (blue), sustaining the signal line's divergence. Note that this indicator follows an asset's general trend and measures its moment. Traders use the MACD to identify the position to sell the top or buy the bottom. A MACD line crossing above the signal line is a bullish signal, implying that traders should buy into the asset.
MATIC/USD four-hour chart
The In/Out of the Money Around Price (IOMAP) by IntoTheBlock (ITB) reveals that Polygon is in price discovery. In other words, there is no defined resistance ahead of the prevailing market value and that with the right boost, MATIC may continue the winning streak to another record high.
Polygon IOMAP on-chain metric
On the downside, Polygon sits on top of a massive support area, running from $2.22 to $2.29. Here, nearly 5,600 addresses previously bundled up approximately 95 million MATIC. It means that the heavy concentration of buyers at this range will not let bears breakthrough easily. Therefore, the path with minor hurdles will remain upward.
Looking at the other side of the picture
The market value realized value (MVRV) on-chain metric by Santiment has started to reset following a 30-day high of 172%. This metric tracks the average profit or loss of the holders of MATIC tokens moved in the last 30 days compared to the price when each of these tokens last moved. A percentage ratio generated helps identify whether investors are at profit or loss.
Polygon MVRV on-chain model
Following the tremendous rise to 172%, all holders realized profit. Note that most investors tend to sell at a profit, which explains the ongoing retreat of the prevailing ratio at 156%. As selling pressure rises, the price is bound to fall until the ratio resets back into another MATIC buy zone.