It makes sense to sell MATIC at the current price level to take advantage of the recent rally.

In particular, this decision may be enforced by the slight setback it has achieved from its latest peak.

However, there is still potential for more upsides that investors should consider.

The latest bullish rebound since mid-June allowed MATIC bulls to dominate, pushing the price as high as $0.98. The latter resulted in the retest of a long-term bearish resistance line, which is why some investors have viewed this as a take-profit sign.

This explains the 12% retracement that has taken place since then, to MATIC’s press time price of $0.86.

Source: TradingView

A major highlight of MATIC’s current price action is that the retracement has been marked by low momentum.

Normally, you would expect a substantial sell-off after rallying above 200% and pumping into overbought territory.

This either means that there is still some bullish pressure preventing a deeper bearish performance, or many MATIC investors are still holding onto their coins.

Chasing the stream

The distribution of MATIC confirms the diminishing sales pressure, especially from addresses with more than one million coins. The addresses that currently have the largest share of MATIC coins in circulation have stopped selling, which explains the reduced selling pressure.

Source: Santiment

The remaining selling pressure, especially in the past 24 hours, came from addresses with between 10,000 and a million coins.

A bullish volume is currently not enough to yield a significant recovery. However, the slight increase in the balance at top addresses confirms that there may still be some upside potential.

On the other hand, the slow speed suggests that it may just be a retest of the resistance line, hence the resulting bullish pressure may not be of much benefit.

Source: Santiment

MATIC is still trading less than halfway from the middle of its historic high to its low in 2022. It could reach even more upwards in the coming weeks, perhaps even breaking above the 200-day moving average.

Such an outcome would result in a breakout of resistance above the support line. However, investors should still watch out for the possibility of capitulation, especially if the bulls don’t take over.

This post Why MATIC Resistance Breakout Is Still On The Table?

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