Polygon (MATIC) Triggers Weekly Buy Signal: Is Now the Time for Investors to Act?

• Polygon (MATIC) is showing bullish signs according to on-chain metrics.
• However, there are concerns about potential selling pressure.
• Crypto analyst Ali Martinez notes a buy signal on the TD Sequential indicator for MATIC.

Discover the latest insights on Polygon (MATIC) as it flashes a buy signal. Will it sustain its rally amidst potential selling pressure?

MATIC Flashes Bullish Signals on On-Chain Metrics

Polygon (MATIC) has been exhibiting bullish tendencies based on various on-chain metrics. The TD Sequential indicator on the weekly chart has flashed a buy signal, which could indicate an uptrend lasting one to four weeks, according to crypto analyst Ali Martinez. This development has generated optimism among investors, but concerns about selling pressure remain valid.

High On-Chain Activity Could Boost MATIC Demand

The daily active addresses for MATIC peaked in mid-March and have since trended downward until early May. Despite the price downturn, the number of daily active users has consistently hovered around the 400k-500k mark. This sustained activity could spur organic demand for MATIC, potentially supporting its price.

The mean coin age has also been trending higher over the past month, reflecting network-wide accumulation. The MVRV ratio, which was deeply negative in mid-April, has improved, suggesting that the price might break out of its current range between $0.65 and $0.75. However, a recent spike in dormant circulation has raised fears of increased selling pressure.

Can MATIC Break Out of Its Range?

Since April, MATIC has been trading within a range of $0.65 to $0.75. The ascending trendline failed to hold as support, but the price is now close to breaking out past the range highs. The RSI on the daily chart has climbed above neutral 50, indicating bullish momentum. The CMF also supports this bullish bias, with a reading of +0.11, suggesting significant capital inflow into the MATIC market.

However, the OBV has not confirmed this bullish sentiment, as it remains in a downtrend since mid-March. Despite this, the weekly TD Sequential and daily momentum indicators could be early signs of a breakout. A daily session close above $0.75 could catalyze buying activity and provide the volume needed to sustain the rally.

Conclusion

Polygon (MATIC) is showing promising signs of a potential rally, backed by positive on-chain metrics and bullish indicators. However, investors should remain cautious of potential selling pressure. A breakout past the $0.75 resistance level could be a key indicator of sustained upward movement. As always, it’s crucial to stay informed and monitor market developments closely.