The recent launch of MATIC Options by Siren Protocol is one of the many updates on the MATIC network, one supporting its bullish narrative and its price rally. With MATIC’s price above the $1.8-level at press time, the recovery is not yet complete. However, there may be more consolidation before the price rally continues once more.
The same was evident from the HODLers’ composition. At the press time price level, nearly 50% of HODLers were profitable. Such a low level of profitability hiked up the selling pressure on MATIC, with less than 5% HODLers having held MATIC in the past year.
Again, the price recovery is not entirely complete, and though the price did rebound, the consolidation was evident from the charts. What’s more, based on on-chain metrics, there may be further ranging. The network had $3.12 billion worth of transactions over the past week and the network’s growth was at nearly 10%.
Ergo, it seemed likely that there may be another dip since the market capitalization was at the $18.5 billion level. While the trade volume dropped for the past week, this dip could be indicative of increased selling pressure and the upcoming price drop.
MATIC’s market cap dominance was up to 0.63% too, according to CoinGecko. Despite market dominance of below 1%, the 30-day ROI was 130% and this is likely to increase demand from retail traders and traders looking for high short-term ROIs.
MATIC’s ecosystem has grown lately, and its social volume was high enough to rank in the top-10 trending cryptocurrencies on CoinMarketCap, at the time of writing. 30% away from its ATH, MATIC’s rally will continue, with a dip likely to match the drop following the crash of 19 May. Since MATIC’s volatility is high, and the price is likely to recover well above the $2-level.
Back in February 2021, MATIC’s market capitalization was $200 million. Now, it is at $18.4 billion in just four months. In these four months, the price has risen by over 873%. The high short-term ROI has increased the number of traders, HODLers, and accumulation by both retail and institutional traders.
While the press time on-chain sentiment was bearish and could lead to a dip in price, recovery is likely to support another price rally to the $2-level. MATIC’s rally is likely to continue till the altcoin hits its next ATH.