Polygon MATIC Values Can Tank Despite 22% Rise, Here Is Why

Polygon MATIC token values have been surging for the past week and represent a 22% rise. The latest surge in prices has helped MATIC to wipe out the past losses. However data is suggesting a fall could be in the offing in the coming days.

Polygon MATIC Values Surge 20% Over Past 24 hrs

As per data obtained from Santiment , MATIC values have surged by over 20% in the past on day. The world crypto sector had a brief hiccup after the release of Consumer Price Index data.  The cumulative digital asset market cap surged by 3% in the last 24 hours and stood at $892 billion over the last day.

📈 #PolygonNetwork has enjoyed a nice +20% price day as #crypto enjoyed a mild pump after #CPI data. Be cautious of the fact that average traders are +28% on $MATIC in the past 30 days, which is the highest level since October. A cooldown may be required. https://t.co/qJkQBedLlU pic.twitter.com/z863T5QcpW

— Santiment (@santimentfeed) July 14, 2022

In the past month the diminutive coin has surged most and become the top gainers. It surged by a stupendous 43% in the same period of time.

However, looking closely the data suggests that the investor must be wary of a coming fall in prices as the number of traders has increased by over 28% on the Polygon in the past 30 days. A possibility of a burnout is always there and a cooldown might be required. Meanwhile, the MVRV intraday ratio stands at 28.46%.

The Polygon is trading at an average price of $ $0.6309 at the press time. It is up by over 18.20% over the last day. Polygon MATIC 24 hour trading volume has jumped by more than 106% to stand at $1.22 billion.

What Is Fueling Polygon MATIC price surge?

The latest surge in prices has been precipitated by a slew of announcements made by the platform. However the top notch Ethereum whales are also hoarding MATIC token

As per the data obtained from WhaleStats, Polygon has been able to unseat BAT token for the most traded coin among the largest of the 1000 Whales. MATIC is also on the top of the 10 tokens purchased by the top 500 ETH wallets over the last 24 hours.