- MATIC recorded weekly and monthly losses of 12% and 23%, respectively.
- MATIC whales appeared to be buying the dip at press time.
According to CoinMarketCap, MATIC has continued its downward trend over the past 24 hours, losing 2.5% in value. In fact, the 17th largest cryptocurrency plunged more than 12% in a week and 23% in a month, making holders anxious about what will happen next.
However, amid the uncertainty and weakness, one analyst noticed a bullish signal emerging on the coin’s daily chart.
Is recovery on the cards?
Ali Martinez, known for his insightful views on the cryptocurrency market, spotted a buy signal in the TD Sequential indicator. He added that if MATIC does not fall below $0.87, a bounce to the $0.95-$1 range is more likely. At the time of this writing, MATIC was trading around $0.87.
Interestingly, whale investors were into buying the dip. AMBCrypto’s analysis of Santiment data showed that while MATIC’s price was falling, wallets holding between 100 and 1 million coins were steadily accumulating.
Source: Santiment
As is well known, dip-buying is an investment strategy that involves buying an asset when its price is falling and hoping to profit from future price increases. This is usually used by traders with a deep understanding of the markets.
Please note these results:
However, examining the On Balance Volume (OBV) indicator did not yield optimistic results.
OBV, a volume indicator that monitors buying and selling pressure, has seen lower highs and lower lows consistent with the price trajectory. In this case, the downward trend is assumed to continue. At least in the short term.
Source: Trading View
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Pessimistic news about altcoins was also delivered to the derivatives market. AMBCrypto’s analysis of Hyblock Capital data shows that the total number of whales holding long positions in MATIC has decreased significantly since the price drop.
Source: Hiblock Capital
However, the overall sentiment in the market remains “greedy” and buying pressure is likely to increase in the coming days.