- MATIC posted a weekly loss of 12% and a monthly loss of 23%.
- At the time of writing, the MATIC whale appeared to be buying on the edge.
MATIC maintained a downward trend over the past 24 hours, losing 2.5% of its value coin market cap. In fact, the 17th largest cryptocurrency has plunged more than 12% in a week and more than 23% in a month, leaving holders worried about what will happen next.
However, amidst the uncertainty and bearishness, analysts drew attention to bullish signals emerging from the coin’s daily chart.
Is a recovery on the horizon?
Ali MartinezKnown for his insightful views on the crypto market, he spotted a buy signal in the TD Sequential indicator. He added that if MATIC does not fall below $0.87, it will likely bounce back to the $0.95-$1 range. At the time of writing, MATIC was trading at just around $0.87.
Interestingly, whale investors are indulging in spot-buying. AMBCrypto’s analysis of Santiment data shows that while MATIC’s price was falling, wallets holding between 1 million and 1 million coins were steadily accumulating.
Source: Santiment
As it is well known, spot buying is an investment strategy that involves purchasing assets when prices are falling in the hope of benefiting from the possibility of future price increases. This is typically used by traders who have a deep understanding of the market.
Please note these findings
However, an examination of the on-balance volume (OBV) indicator did not yield any bullish results.
OBV, a volume indicator that monitors buying and selling pressure, was seen cutting lower highs and lowering lows in line with the price trajectory. In this case, the downtrend is likely to continue. At least in the short term.
Source: Trading View
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There was also pessimistic news for altcoins in the derivatives market. According to an analysis of AMBCrypto’s Hyblock Capital data, the total number of whale positions that are long on MATIC has decreased significantly following the price decline.
Source: Hyblock Capital
However, overall market sentiment remains “greedy”, which could increase buying pressure in the coming days.
