As the number of whale addresses holding Layer 2 (L2) tokens begins to rise, Polygon (MATIC) may be preparing for an uptrend. An evaluation of token movements on the 1-day chart could indicate that the bullish trend is gradually re-emerging in the MATIC market. An analysis of MATIC distribution shows an increase in the number of whales holding more than 100,000 tokens.
Increase in MATIC Whales
This investor group grew by 1.2% over the past week. This group of MATIC investors held 77.41% of the total circulating supply of 10 billion MATIC. The increase in whale activities led to a 3% rise in MATIC’s value last week, reversing the general market downtrend observed during the same period.
The growth in the number of MATIC whales during the same period may be due to the profitability of transactions involving altcoins. Additionally, the evaluation of MATIC’s daily profit/loss ratio was 1.03. This metric’s value indicated that more profitable MATIC transactions occurred in the last seven days than losing ones. The metric shows that for every losing MATIC transaction, 1.03 transactions brought profit to investors.
Moreover, MATIC’s Chaikin Money Flow (CMF) value was 0.07. This indicator measures the buying and selling pressure behind a token’s price movement. Its positive value means more money flowed into the token on bullish days than on bearish days, which could indicate that buyers are in control.
Price Prediction for MATIC
The positive CMF of ADA and the evaluation of the price uptrend together could indicate an increase in bullish sentiment around the altcoin. Additionally, data obtained from MATIC’s Moving Average Convergence Divergence (MACD) indicator showed that the MACD line was set to cross above the zero line at the time of writing.
When a token’s MACD line crosses above the zero line, it can indicate a shift in momentum from a bearish to a bullish trend. This situation could suggest that the moving average is catching up with the current price and that the price may be in an uptrend.
