Polygon’s MATIC token concluded the month of June with a 30% bearish correction. The token has kicked off July with the identical bearish vitality and will probably search extra draw back attributable to a community assault.
The Polygon community’s newest replace on 1 July revealed that its public RPC gateway provided by Ankr skilled a DNS hijack. The assault reportedly compromised management over some companies on the Polygon community. One of many newest updates confirmed that the Polygon PoS community was not affected by the assault.
Ankr is at present working to revive its Polygon RPC’s area performance that can not be accessed. Pockets customers and dapp companions could also be affected. We are going to proceed to put up updates right here as they change into obtainable.
This DOES NOT have an effect on the Polygon PoS chain.
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— Polygon – MATIC 💚 (@0xPolygon) July 1, 2022
Community assaults or downtime have traditionally had a unfavorable influence on a community’s native cryptocurrency. That being stated, MATIC could also be due for extra draw back if the identical premise holds true.
MATIC’s long-term value motion has been buying and selling inside a falling wedge sample. Nonetheless, its newest rally which began on 19 June kicked off earlier than the worth interacted with its help stage.
Supply: TradingView
A better have a look at its value motion reveals that the rally began after the Relative Energy Index (RSI) dipped into oversold territory. Nonetheless, the Cash Stream Index (MFI) stood just under impartial 50 headed upwards hinting in the direction of some accumulation of the token.
The most recent retracement began after an 80% uptick. MATIC nonetheless has some floor to cowl earlier than reaching the oversold territory as soon as once more.
Can the bulls reclaim their dominance?
MATIC’s change flows reveal an fascinating statement within the final two days. Trade inflows peaked at 1.52 million on 30 June whereas change outflows on the identical day peaked at 10.27 million.
Trade inflows on 1 July stood at 2.23 million whereas change outflows throughout the identical buying and selling session had been at 10.99 million. This implies the change outflows outweighed the inflows within the final two days.
Supply: Santiment
The upper change outflows align with observations of decreased sell-offs from deal with balances. Provide distribution by the steadiness on addresses factors towards the chance of a bullish uptick as addresses with massive balances begin shopping for.
For instance, addresses holding between a million and 10 million MATIC cash elevated their balances from 9.48% ton 30 June to 9.68% at press time.
Supply: Santiment
Moreover, addresses holding between 100,000 MATIC and a million MATIC dropped from 1.84% on 30 June to 1.79% on 2 July. Addresses with greater than 10 million cash dropped from 86% to 85.82% throughout the identical interval. This explains why there may be nonetheless some promoting stress regardless of larger change outflows than inflows.
The slight uptick in some deal with balances additionally displays the general uptick recorded by the availability held by prime addresses metric within the final 5 days. The chance of MATIC’s bullish restoration is additional supported by the robust community progress that the Polygon community achieved within the final 30 days.
Supply: Santiment
