On the back of strong Bitcoin gains, the state of the broader crypto-market has been satisfactory, to say the least. However, diminishing returns offered by some of the top altcoins including Cardano, Solana, Avalanche, and MATIC have triggered a sense of uncertainty for these altcoins.
Nonetheless, there were subtle signs in price structures and the state of on-chain metrics that gave way to some optimism for their trajectories, especially for MATIC.
Price stuck in a closed channel
MATIC jumped 10% to a three-week high of $1.42 on October 8, after making lower lows for the most part of September. There were talks of Polygon overshadowing the Ethereum network after the former’s active addresses briefly flipped ETH’s a week ago. Yet, in actuality, the rise in adoption of its interchain scalability solution is obliquely a boon to Ethereum.
The reason being, Polygon is an L2 solution that runs on the Ethereum network to process transactions faster and makes it easier for apps built on Ethereum to work with other blockchain platforms.
More recently, Polygon released “Swap for Gas” on the same day its price made a new three-weekly high. Swap for Gas is an easy-to-use solution for sourcing MATIC on Polygon Mainnet that also makes bridging easier. Nonetheless, these developments couldn’t pull MATIC out of its range-bound momentum or take it above the $1.5 mark.
Bullish structure in the making?
The bright side of MATIC’s restricted movement however was that price-wise MATIC has been making a bullish structure. With the 14-day RSI looking bullish standing above 50, pointing upward, the alt may see further gains once the key resistance at $1.5 is breached.
Further, its price seemed to form a giant triangle. Breaking through the trend line and fixing above it could give a strong price movement to the base of the triangle.
Thus, notably with a symmetrical triangle on MATIC’s price getting tighter the chances of a breakout seem to be getting closer too.
Network growth fueling Perpetuals market
As per to data from DefiLama TVL in Polygon just falls short of $9 billion as it stood at $8.43 billion at the time of writing but the protocol could see those levels by the end of October. This growth in MATIC’s network could be credited to the NFT boom and the gaming tick-off.
Other factors like the news of the Polygon blockchain being used by Switzerland’s postal service also pushed a positive narrative for the coin amid consolidation.
Notably, MATIC’s percentage of stablecoin total supply held by whales with more than 5 million USD had been noting a rise. As the metric neared ATH levels with prices showing no major uptick the same was indicative of whales stacking up which was a good sign for MATIC’s price in the near future.
Source: Sanbase
Additionally, Open Interest for the altcoin seemed to be on a steady rise, in the Perpetuals market. In fact, OI saw a 7.15% rise in one day from the time of writing.
Source: Coinalyze
However, active addresses and daily active addresses highlighted a lack of participation from the market while a low trade volume trend also presented skepticism in the spot market. Nonetheless, with the network showing growth and certain metrics aligning, a strong push from bulls could send MATIC to a new ATH.