MATIC shows 63% rally this week, becoming one of most profitable assets on market
Despite a negative first half of 2022, some altcoins, including Polygon’s MATIC, managed to breakout from the massive downtrend started in November and even cover part of the loss they took during the bear market.
In the last week, MATIC saw massive 63% growth after Disney Accelerator chose Polygon as part of their program. The program is designed for discovering and supporting projects that work on augmented reality, NFTs and other innovative entertainment technologies.
📊 #Altcoins spent the first half of 2022 seeing market cap gains being flushed rapidly. However, projects like $MATIC have made up for some of its losses quickly, jumping +63% in a week. Address activity is also rising, showing an intriguing divergence. https://t.co/eJ3hMbkE2N pic.twitter.com/cz2gxvaOlL
— Santiment (@santimentfeed) July 18, 2022
With the rise of MATIC, we saw a rise in address activity, which shows that the fundamental growth of the network started following the market price of MATIC. Previously, investors were able to see the first oversold signs going back to mid-May.
The plunging price of an asset that comes with rising address activity is one of the first signs of active accumulation, which could last for months.
MATIC price performance
According to the daily chart provided by TradingView, MATIC is currently moving in an uptrend and showing several reversal signs, including the 50-day moving average breakout and a successful spike above the historical resistance of $0.88.
The Volume Profiles indicator suggests the token is not yet facing a rally, fading as investors are actively supporting the “Disney Rally.”
The only indicator that currently shows some worrisome signs is the Relative Strength Index, which is moving around 77, showing that MATIC is currently oversold. But while RSI enters the reversal zone, it will not necessarily stop the token’s rally.
At press time, Polygon’s token is moving at $0.9 and gaining around 20% to its value in the last 24 hours, becoming the most profitable asset from the top 50 digital assets by market capitalization.