Polygon May See Short-Term Volatile Price Movement – ​​Here’s Why

By August 4, 2022Layer2
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Polygon May See Short-Term Volatile Price Movement – ​​Here’s Why

The polygon network continues to experience impressive growth within its ecosystem. Just a day ago, the Polygon contract management released 13.87% of the total supply to the foundation contract management.

Following significant development, the native token underwent key moves.

Up or down?

Following the network, the unlocking of tokens, a massive awakening of MATIC addresses in Santiment was observed. In this paper, a significant volume of idle tokens changed direction as the consumed token age increased to a massive high of 1.66 trillion.

These spikes usually indicate a price trend direction.

On the other hand, Polygon’s average dollar age decreased, underscoring the fact that older inactive addresses moved a large number of coins.

The Consumed Token Age metric shows the number of tokens changing direction on a given date, multiplied by the number of days since they last moved.

Indeed, a useful metric for understanding the direction of price movements. But this alone may not be enough to gain clarity.

Looking at a few other metrics might give you a better idea of ​​whether to go long or short.

Consider this: the MVRV ratio recovered and showed a positive impact on the market value of the asset.

Therefore, it shows a growing interest in the token. Also, showing that the token remains in the middle of an accumulation phase.

opportunists

The whales supported the aforementioned narrative.

According to data from the whale monitoring service WhaleStats, the Ethereum whale (bonobo) squandered more than $14 million in recent days.

made an initial purchase of $1.1 million worth of the flagship token, and later acquired another $1.9 million for a total of more than 2.1 million tokens.

In general, all the ideas mentioned suggested a strong price movement in the short term.

Mostly facing north side. Still, a strong performance in the second quarter is needed to support the potential increase.

That said, the probability of a recession cannot be ruled out. Therefore, traders/investors should be cautious before relying heavily on MATIC.

source: ambcrypto.com

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