themorningcrypto

    Polygon Network’s Rise Related to KNC Token Recent Spike

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on October 26, 2022 3:14 PM

    Updated on January 25, 2023 3:15 PM

    KNC has had nearly no volatility over the past 12 days, which makes accumulating an alluring activity.
    Polygon Network’s Rise Related to KNC Token Recent Spike

    The potential for a continuing surge to $1—the level last reached two months ago—has increased with the recent increase in layer 2 scaling tool Polygon's MATIC token. Technical analysts who analyse price chart patterns to predict an asset's future movements convey this message.

    According to information obtained from the charting site TradingView, MATIC increased by more than 12% to roughly 90 cents last week, solidly establishing itself above the widely monitored 200-day simple moving average (SMA), a sign of a long-term trend. Price moving above the 200-day SMA signifies a change in momentum for the better.

    The surge is likely due to the spike in the Khyber Network’s native token KNC as Polygon and Khyber joined hands earlier to develop the ecosystem.

    Since July 31, important wallets that hold between 1 million and 10 million KNC have added 20% of the supply to their holdings, driving up the volume of whale transactions on KyberNetwork. The network has seen the unexpected buildup before; the last time it did, KNC experienced an over 70% growth in just six months.

     

     

    In the meantime, Polygon (MATIC) also presented a comparable image while trading during the "crypto price correction" phase. In contrast to other stocks, MATIC saw large increases on the trading day and has increased by more than 6% over the past 24 hours. As shown below, on-chain indicators like trading volume revealed startling statistics.





    Holders Distribution

     

    Up until a recent surge, whales from 1M to 10M were peacefully accumulating.

    Smaller whales are exhibiting some patterns of accumulation. except for the recent days.

    A bullish sign is that whales have lifted Polygon's price above the collapsing wedge pattern. According to Polygon's price research, a rally to $0.94 and then to $1.04 is possible. If the price declines and breaks below the moving averages, this optimistic outlook may become worthless in the near future.

    The price swing may also be related to the recent statement by Nubank, a Brazilian fintech firm backed by Softbank and Berkshire Hathaway, that it chose Polygon's "Supernets technology" for its blockchain and digital token, known as Nucoin.