Polygon: Why MATIC is not bullish despite so many favorable factors
Polygon and its MATIC token are entering an exciting time, especially with the latest developments. Ethereum L2 recently confirmed a partnership with exchange Robinhood, and their new relationship has just reached a major milestone.
Polygon previously announced a partnership with Robinhood and that affected MATIC's price action. No official release date has been announced, but the latest announcement highlights the rapid development going on behind the scenes. The exchange has just announced the launch of an exclusive WEB3 wallet on Polygon.
The launch represents a great start to the partnership between Polygon and Robinhood. However, it's currently in beta, so it's not quite ready for mainstream impact yet. Furthermore, MATIC has been in free fall since its initial announcement. This means that the announcement was not enough to turn the tide for MATIC and instead the native Polygon token has been falling in price since mid-June.
MATIC price action remains bearish despite the positive news. However, it is likely that the new release will eventually trigger positive investor sentiment. Weighted sentiment on MATIC remains in its four-week lower range.
Its performance reflects the absence of buying pressure in the market. MATIC's supply distribution also revealed that some of the larger whale species contributed to the decline. For example, the largest catalog of whales (addresses with more than 10 million coins) has been selling exceptionally well in the past three days.
In contrast, addresses holding between 1 million and 10 million coins were purchased. Unfortunately, this is not enough to make up for the drop that has taken place in recent days. Selling pressure has slowed considerably, which could lead to a potential upside in the coming days.
A weighted shift in sentiment will likely encourage a bullish outcome, but that will require a catalyst or a positive event. There are a number of observations that may favor such an outcome. A good example is Polygon's dramatic rise in network growth.
Favorable growth networks can also encourage investors, especially after a period of price decline. In the event of such an outcome, the MATIC bulls might soon attempt a short-term recovery.
MATIC is trading at $0.73 at press time, a slight premium compared to its performance a week ago. Perhaps a sign that he is regaining relative strength from him, which could mean more relief after breaking out of his bearish pattern in mid-September.
Despite its average performance, the latest MATIC development is quite promising. It has the potential to boost MATIC's performance, especially in the long run.
Sep 29, 2022