Assessing reasons behind MATIC’s unprecedented spike in its value

ambcrypto.com:

Recently, there has been a rise in the price of Polygon [MATIC], and this increase appears to have been caused by the activity of some whale addresses.

What are some of the likely reasons behind the actions of these whales, and how could the price of MATIC be further impacted by their actions?

Read Polygon (MATIC) Price Prediction 2023-24

When analyzing Polygon (MATIC) on-chain data, it could be seen that institutional investors have been buying more of the token as of late.

Per Alicharts, investors holding between 10 and 100 million MATIC have purchased 55 million more for almost $60 million. Santiment’s graph likewise shows an increase in the token’s circulation inside that price band.

As of the time of this writing, the supply distribution statistic indicated an increase of 11%. It was also noted that the delivery of supplies began to increase in volume in February.

Source: Santiment

A daily timeframe chart shows that Polygon (MATIC) has been upward over the past few trading days. Up about 4% from its opening price, it was trading at about $1.38 as of this writing.

Based on the increase seen throughout the trading session, MATIC’s price rose by over 16% over the preceding three days. Even more impressive was that its current upswing meant it had increased by more than 75% since the beginning of the year.

Source: Trading View

The extension of the Bollinger band, along with the present price movement of MATIC, implied that the price was unstable.

Therefore, the visible support line was the one that was offered by the short Moving Average (yellow line). According to the Relative Strength Index, the asset was in a bull trend and on the verge of hitting the overbought region.

However, a look at the 30-day Active Address