- MATIC recorded weekly and monthly losses of 12% and 23% respectively
- At the time of writing, MATIC whales appeared to be on a dip buy.
MATIC has maintained its downtrend over the past 24 hours, losing 2.5% of its value CoinMarketCap. In fact, the 17th largest cryptocurrency crashed by more than 12% during the week, and by 23% on a monthly time frame, leaving holders worried about what’s to come.
However, amid the uncertainty and bearishness, an analyst drew attention to a bullish signal coming from the coin’s daily chart.
Is recovery on the map?
Ali Martinez, known for his insightful views on crypto markets, saw a buy signal on the TD Sequential indicator. He added that if MATIC does not fall below $0.87, the price is more likely to return to the $0.95-$1 range. At the time of writing, MATIC was trading around $0.87.
Interestingly, whale investors have indulged in dip buying. According to AMBCrypto’s analysis of Santiment’s data, portfolios holding between 100 and 1 million coins steadily piled up while MATIC’s price fell.
Source: Santiment
As is known, dip buying is an investment strategy that involves purchasing an asset when its price falls, hoping to benefit from potential price increases in the future. This is generally used by traders with a deep understanding of the market.
Please take these findings into account
However, the examination of the On Balance Volume (OBV) indicator did not yield bullish results.
OBV, a volume indicator that monitors buying and selling pressure, showed lower highs and lower lows in line with the price trajectory. When this happens, the downward trend is considered to continue. At least in the short term.
Source: trading view
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The derivatives market also delivered pessimistic news about the altcoin. The total number of whale positions going long on MATIC fell significantly after the price drop, according to AMBCrypto’s analysis of Hyblock Capital data.
Source: Hyblock Capital
However, the overall sentiment in the market remains one of ‘greed’, which could potentially lead to an increase in buying pressure in the coming days.