By Nathan Ferguson
Polygon (MATIC) ended June 30% down as bears controlled price tendencies. The alternative token has welcomed July with similar bearishness and could hit more declines because of a network attack. The latest Polygon network update (July 1) confirmed the RPC gateway provided by Ankr witnessed a DNS hack. The hijack reportedly conceded control over given Polygon services.
Platform downtime or attacks have downside effects on the network’s native crypto. That way, MATIC might be readying for more declines if a similar scenario holds. Polygon has had its long-term price trend hovering inside a declining wedge setup. Nevertheless, the latest upsurge from June 19 emerged before MATIC hit its support floor.
Evaluating the token’s price movements shows the leg up showcased after the RSI (Relative Strength Index dropped inside the oversold region. Nevertheless, the MFI (Money Flow Index) remained beneath the neutral level while hinting at some MATIC accumulation. The recent corrections launched after an 80% surge. For now, the alt has some way to cover before hitting the oversold region again.
Can Bulls Regain Their Regime?
Polygon’s exchange flows print a fascinating observation within the past two days. The asset’s exchange inflows hit the 1.52 million peak on June 30, whereas outflows peaked near 10.27 million that same day. On July one, exchange inflows hovered at 2.23M. On the other part, outflows stood at 10.99 million. That means outflows outshone inflows within the past two days.
The increased outflows match the notions of declined address balances sell-offs. Balance on address supply distribution confirms a likely bullish surge as wallets with massive balances began accumulation. For instance, addresses with 1M to 10M Polygon tokens added their address balances from June 30 at 9.48% to 9.68% during this publication.
Moreover, addresses with 100K to 1M tokens plummeted from 1.84% on June 30 to June 2 at 1.79%. Those holding over 10 million alts dropped to 85.82% from 86% during the timeframe. That explains the selling strength regardless of exchange outflows exceeding inflows.
Also, the brief upticks in some balances reflect an overall surge in supply controlled by the leading address index within the past five days. Moreover, the impressive network growth by Polygon within the past 30 days supports MATIC’s bullish probabilities.