Polygon stock jumped 60 percent in four trading days amid a “pretty big” accumulation of shares by its largest shareholder, according to an analyst who covers the
MATIC took a break from its bearish trend, posting one of the most impressive rebounds in the cryptocurrency market this week.
MATIC’s price has risen dramatically, rising from $0.317 to $0.50 in just 4 days. This amounts to a 60% increase, surpassing the performances even of Bitcoin and Ether in the same time frame.
MATIC is an ERC20 token built on the Ethereum blockchain
However, MATIC is still considerably lower than its December 2021 highs of $2.92. It is currently trading at $0.01.
MATIC “in an even bigger accumulation”
Meanwhile, some of MATIC’s richest investors have been accumulating their tokens despite the general downturn. On-chain data suggests.
Polygon tokens were launched in September 2017 with an initial supply of 1 billion tokens. Since then, the total supply has grown to 2.5 billion tokens. The price of the token has increased by about 5x since its launch.
It’s interesting that MATIC’s price has dropped by half in the same time frame, showing that many whales are confident that the company will recover from its current low point.
Inverse head and shoulders
From a technical point of view, MATIC/USD looks set to continue its upward trend.
In detail, the Polygon token has broken out of its inverse head and shoulders pattern since June 22nd. An inverse head and shoulders pattern is a bearish reversal setup that forms when the price breaks out of an inverted triangle formation while hanging upside down by the neckline.
A breakout occurs when the price moves above the upper boundary of the trading range. A breakout may occur at any time, but it usually happens near the top of the range. If the price continues higher, it will eventually break out of the range and move towards the next resistance level.
MATIC is an ERC20 token built on Ethereum blockchain.
Because of its IH&R pattern, MATIC’s stock price could rally toward $60 in June or early August, up about 20% since June 2.
Caution for MATIC bulls
Whales are not always bullish. They tend to buy when prices are low and sell when prices are high. When prices are rising, they tend to sell. When prices fall, they tend to buy. Whales are often referred to as market makers because they provide liquidity to the market. They are usually large investors and will move the market if they think there is an opportunity to make money.
Related: “Bitcoin is dead” searches hit an all-time high
Furthermore, the MATIC balance on all crypto exchanges increased from 1.21 billion USD to 1.37 billion USD between May 1 and June 22, indicating additional potential sell pressure in the near future.
Polygon Exchange reserves are an innovative form of cryptocurrency
The views expressed here are solely those of the author and do not represent the views of Cosmosups.com. Every investment or trading move involves risk, so you should conduct your own due diligence before making any investments.