The Polygon (MATIC) market has been presenting some intriguing signals that have caught the attention of attentive investors. Recent activities suggest that there has been quiet MATIC accumulation over the past two weeks, often preceding significant price movements. Since the price oscillates during this period, the underlying question is whether MATIC is preparing for an explosive move.
The price chart reveals that MATIC has experienced a reversal after an unexpected and critical 21% drop. The market’s response to this decline is crucial to understanding the future trajectory. Typically, after such a drop, smart investors look for signs of accumulation as an indicator of possible bullish momentum. This is due to the common market saying that “volume precedes price”, which suggests that if accumulation occurs, a price increase may be imminent.
An increase in volume accompanying the price range could indicate that investors are seeing value at these levels and are stepping in to buy, potentially setting the stage for an uptrend. As seen on the MATIC/USDT daily chart, the volume profile is descending, hinting at a possible trend reversal in the foreseeable future.
Additionally, technical analysts will be on the lookout for a confirmed breakout on the charts. This would imply MATIC closing above a key resistance level on higher volume, lending credence to the theory that an explosive price move is on the horizon.
The type of advance, whether thanks to high volume or during a period of low volume consolidation, will be key in predicting the strength and sustainability of any bullish price action.
