Here is Why Ethereum Matters Most for MATIC’s Surge

Most digital assets trailed BTC movements and enjoyed a rally during yesterday’s sessions. However, altcoins stepped back when the world’s dominant coins appeared to chill near the $62,000 level. MATIC, besides NU, was the only token in the top-100 that extended its double-digit gains, even when writing this content.

After seen consolidative actions in the past few months, MATIC flipped the consolidation narrative during Saturday sessions after recording a sturdy green candlestick on the price chart. MATIC closed near $1.6 – its 7 September level after the altcoin opened around $1.2 on Friday.

The ETH-MATIC Bond

MATIC followed ETH’s footsteps in a most downtrend and uptrend phases. For instance, when Ethereum created highs daily in May, MATIC surged 350 in two weeks (from $0.6 to above $2.7). Notably, BTC trended lower on the price chart at the same time.

Meanwhile, Ethereum (ETH) surged less than 1% in the past 24 hours. That way, some analysts believe that the MATIC-ETH bond is fading away gradually. Though such an argument may be somewhat real at the moment, beware that it might not work for long.

The X Factor

MATIC’s recent upsurge came after the coin’s listing on Upbit, a South Korean trading platform. The alternative asset had its trading volume at $1,870,086,050 over the last 24 hours– 28.73% of Upbit’s total volume.

Remember, exchanges do not list tokens often. Whenever they do that, they contribute to the asset’s price. With that, MATIC could not have recorded such upticks within a short time, excluding the Upbit move.

Meanwhile, the total withdrawal transactions hit a four-month peak yesterday above 13K. Keep in mind that withdrawal transaction surge indicates an accumulation trend, while a plummet is vice versa.

However, the surge did not persist, and the level mentioned above failed to stay for long. The chart indicated that the transactions count suffered a free rise to the downside. While publishing this content, it was on a six-month low.

Fundamentals

Meanwhile, DAA has recorded a rise recently. Santiment chart shows that price DAA has projected a massive bullishness since the last month-end. The model shows how daily active addresses relate to the token’s price. For now, MATIC retains bullishness, suggesting healthy daily addresses. That way, the alt can see a rally soon.

Conclusion

Though the Upbit buzz will fade with time, MATIC’s Ethereum relationship and fundamentals will impact the coin’s price in the coming sessions. If Ethereum surge, analysts can expect MATIC to increase. That way, the accumulation case will regain momentum, and exchange withdrawals witness an upsurge.

Gregoire Blanchard

Author: Gregoire Blanchard

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