Key Takeaways:
- Polygon token managed an over 50% jump in 5 days.
- MATIC paints a bullish RSI divergence, expecting more gains; whales accumulate.
- The Network has signed an NFT deal with Bentley.
YEREVAN (CoinChapter.com) – Polygon (MATIC) rebounded from a significant support line at $0.3 on June 19 and has rallied 52% since then. As a result, the digital asset traded at $0.5 in Thursday’s Asian-Pacific session.
MATIC daily chart bullish?
In detail, MATIC suffered heavy losses in the crypto carnage and traded 82% below its all-time high of $2.92 in Dec. 2021. However, the daily chart flashed hopeful signs at Polygon bulls. MATIC/USD price action formed a relative strength index (RSI) divergence that could maintain the rally.
The RSI is a momentum indicator traders use as a gouge for the most profitable market entry and exit points. When the RSI slips below the 30-70 range, the asset could be labeled ‘oversold,’ which presents a buy-the-dip opportunity.
Conversely, when the RSI rises above the said range, many traders could choose to secure their profits and cash out, sending the token value south.
Also read: Polygon burns 650K tokens after launch of Burn Mechanism, but MATIC lost 50% since.
Moreover, a bullish RSI divergence occurs when the price action prints lower lows, and the RSI starts charting in higher lows. The deviation signifies an elevation in traders’ expectations, which could lead to another leg up.
Whale expectations on the rise
Crypto analytical platform Santiment noted a rise in “whale and shark” activity, meaning accounts holding 10,000 to 10 million MATIC coins. The platform further asserted that the whales have been in a “pretty big accumulation trend” for the previous six weeks.
Addresses holding 10,000-10,000,000 MATIC coins collectively added over 8.7% to their holdings, using the crypto collapse as an opportunity to buy the dip.
Also read: Bitcoin risks another massive selloff on recession fears, asserts analyst as BTC wobbles around $20K.
But
Not all cues are bullish for MATIC. The trading volumes that surged in the previous days, supporting the rally, cooled off on June 23. If traders don’t put enough weight behind the uptrend, the bullish sentiment will fizzle out.
Additionally, the token depends heavily on Bitcoin BTC price action and the crypto market climate. A solo rally is highly unlikely in turbulent times. Thus, watching the broader economy and BTC/USD fluctuations is key to placing profitable MATIC bets.
Also read: Cryptocurrency prices today: ZIL, 1INCH, ADA, HOT, MATIC, VET.
As CoinChapter previously reported, many experts have a bearish long-haul outlook on Bitcoin at the moment, seeing a possibility for another 50% drop.
Meanwhile, Polygon scored a key NFT partnership with Bentley Motors, elevating MATIC’s bullish chances.
Polygons signs an NFT deal with Bentley
British luxury car manufacturer Bentley Motors announced its “first venture into the NFT marketplace.” The company will hold a “one-time NFT drop on” Polygon network, scheduled for September 2022. NFT collection will be limited to just 208 pieces, particularly relevant to Bentley.
Also read: Inflation will ease with a 5% unemployment rate says Lawrence Summers.
Bentley asserted its interest in exploring other digital platforms, including NFCs (non-fungible chips), online gaming, and Metaverse applications. The company also singled out Polygon’s carbon neutrality as a primary force behind the choice.
[Bentlay has] a commitment to achieving end-to-end carbon neutrality by 2030, the same year when all Bentley vehicles will be fully battery electric. It was vital that Bentley’s first venture into Web3 was in a sustainable way.
announced the company.
