Polygon traders may be in for a pleasant surprise after MATIC’s bear season

ambcrypto.com:

Polygon [MATIC] rested its short-term support last week but failed to garner enough buy pressure to support a healthy bounce. Instead, the bulls lost the battle to the bears, leading to a 24% crash in the last 10 days.

MATIC had been trading within a megaphone pattern prior to the bearish performance since mid-June. It failed to garner enough bullish momentum towards mid-month, and investors took this as a cue to sell.

As a consequence, MATIC dropped by as much as 24% from 13 September.

Source: TradingView

A 7.16% uptick after recovering from a weekly low of $0.69 indicates that MATIC might already be headed for a bullish relief. MATIC’s Money Flow Index (MFI) tapered out after recording outflows since last week. The lower sell pressure also favored an RSI pivot, indicating that the bulls were regaining some strength.

Although MATIC’s chart looks bullish, it does not necessarily guarantee that its price action was on the verge of a bullish pivot. On-chain metrics did provide a compelling outlook. For example, we observed a sharp uptick in MATIC’s social volume on 21 September. This marked the highest weekly social volume in the last seven days.

Source: Santiment

Furthermore, the price since then adopted a bullish performance, indicating that the spike may have been a buy signal. If the opposite were true, then MATIC’s downside would have gotten stronger.

In addition to the metrics mentioned above, MATIC’s velocity also registered a sharp spike. This confirmed that there was notable activity on 21 September. Its network growth metric pivoted in favor of an upward trajectory just a day prior. Its overall weekly performance also indicated that the network growth was recovering.

Source: Santiment

Positive network growth and a strong