Polygon’s MATIC token concluded the month of June with a 30% bearish correction. The token has kicked off July with the identical bearish power and should doubtlessly search extra draw back as a consequence of a community assault.
The Polygon community’s newest replace on 1 July revealed that its public RPC gateway supplied by Ankr skilled a DNS hijack. The assault reportedly compromised management over some providers 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’t be accessed. Pockets customers and dapp companions could also be affected. We are going to proceed to submit updates right here as they turn into obtainable.
This DOES NOT have an effect on the Polygon PoS chain.[2/2]
— Polygon – MATIC 💚 (@0xPolygon) July 1, 2022
Community assaults or downtime have traditionally had a damaging influence on a community’s native cryptocurrency. That being mentioned, MATIC could also be due for extra draw back if the identical premise holds true.
MATIC’s long-term worth 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 value interacted with its help stage.
A better have a look at its worth motion reveals that the rally began after the Relative Power Index (RSI) dipped into oversold territory. Nonetheless, the Cash Movement Index (MFI) stood just under impartial 50 headed upwards hinting in 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 attention-grabbing statement within the final two days. Alternate inflows peaked at 1.52 million on 30 June whereas change outflows on the identical day peaked at 10.27 million.
Alternate 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.
The upper change outflows align with observations of diminished sell-offs from deal with balances. Provide distribution by the stability on addresses factors towards the probability 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.
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 strain 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 high addresses metric within the final 5 days. The likelihood of MATIC’s bullish restoration is additional supported by the robust community development that the Polygon community achieved within the final 30 days.