60% increase in the price of Polygan in 4 days; Continuous accumulation of Metic tokens
The upside down pattern in the price chart of MATIC (MATIC), the Polygon network token, reinforces the possibility of a 20% jump in the price of this digital currency. During this week, in addition to the downward trend of Polygan finally stopped, the price of this digital currency also increased sharply.
To Report Cointelegraph, 4 days ago, the price of Polygon reached the level of $0.317, which is the lowest price of the last one year, and now the price has increased to $0.5. This 60% increase of Polygon shows the superiority of its performance during the last week compared to major digital currencies such as Bitcoin and Ethereum.
However, Paligan is still far from reaching its highest price in December 2021 (30 Azar 1400), which reached the level of $2.92. This gap was created due to the sharp drop in market prices amid the Federal Reserve’s pressure on risky assets such as digital currencies.
The continuous accumulation of Polygan
Meanwhile, on-chain data suggests that some of the market’s wealthiest investors are piling up the Polygon digital currency, despite the bearish price trend.
Sentiment data shows that Polygon whales have started to accumulate this digital currency. Investors who have between 10,000 and 10 million polygans have increased their polygans by about 8.7% since May 9.
Sentiment writes in its report:
Paligan whales have been accumulating and increasing their assets for about 6 weeks. Investors who have between 10,000 and 10 million Polygons have increased their holdings of this digital currency by 8.7%.
The noteworthy point here is that at the same time as this accumulation of whales, the price of polygan has decreased by 50%, and perhaps this indicates the confidence of the whales regarding the improvement of conditions in the long term.
Inverted head and shoulder pattern
From a technical point of view, it can be said that the price of Polygon is moving towards its highest price in the last few weeks.
eAlso read: head and shoulders pattern in technical analysis; Trade training
Paligan has broken the resistance since June 22 (July 1) according to its inverse head and shoulders pattern. In this bullish pattern, three price floors have been observed, the middle floor consists of the two floors around it at a lower price. Neckline is a level of support or resistance that traders use to determine appropriate ranges for placing orders.
In the reverse head and shoulder pattern, the peak price after the left shoulder is connected to the peak price after the head and thus the neck line of this pattern is drawn. In this pattern, when the right shoulder reaches the top of the neck line, it means breaking the resistance and continuing the bounce.
According to the inverse head and shoulder pattern, the price of Polygon is expected to increase to $0.60 at the end of this month or the beginning of the new month, which is 20% higher than the current price of Polygon.
caution
It should be noted that buying whales is not necessarily always a positive signal to follow, and also the reverse head and shoulders pattern does not occur 16.5% of the time. The price increase may cause whales to sell their assets in order to make a quick profit, considering the difficult conditions of the digital currency market and traditional markets. As a result, the said items may be a wrong signal for buyers.
In addition, CryptoQuant data indicates that between May 1st and June 23rd (May 11th to July 2nd) the Polygon stock of digital currency exchanges has increased from 1.21 billion to 1.37 billion, which can indicate from increasing sales pressure in the short term.