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Polygon (MATIC) reaches 60-day high as token migration approaches

Polygon (MATIC) reaches 60-day high as token migration approaches

GrafaGrafa2024/08/23 03:45
By:Isaac Francis

Polygon's (CRYPTO:MATIC) native token, MATIC, has recently achieved a 60-day high, reflecting a significant 28% price surge.

This increase is largely attributed to the anticipation surrounding the forthcoming token migration from MATIC to POL.

Currently trading at $0.52, MATIC's recent rally is driven by heightened whale activity.

Data from IntoTheBlock reveals a 43% rise in the netflow of large holders—those possessing over 0.1% of the token's circulating supply.

This rise indicates that major investors are accumulating more MATIC, a positive signal that often leads to a sustained price increase.

As whales build their positions, retail investor confidence typically follows, further fueling the rally.

Additionally, MATIC futures traders are demonstrating a strong preference for long positions, as evidenced by a positive funding rate since August 17.

This suggests that traders are willing to pay a premium to maintain bullish positions in the derivatives market.

A positive funding rate reflects greater demand for long trades compared to short positions, reinforcing the bullish sentiment.

The Average Directional Index (ADX) for MATIC is currently at 48.17, indicating a robust uptrend.

The ADX measures trend strength regardless of direction, and a value above 40 typically signifies a strong trend.

In this case, the Positive Directional Indicator (+DI) is above the Negative Directional Indicator (-DI), further confirming the bullish trend and dominant buying pressure.

Looking ahead, if the current trend continues, MATIC's price could potentially rise to $0.55.

However, profit-taking might exert downward pressure, possibly driving the price down to $0.33.

The strong uptrend and increased whale activity position MATIC favorably, though volatility remains a factor in its price movements.

At the time of writing, the Polygon price was $0.529.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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