MATIC, BNB brace for pullback with spike in trading volume of altcoins
- MATIC and BNB have observed high interest from traders, as seen in rising trading volume of the two assets.
- Experts at Santiment predict that profits from Bitcoin are likely to be redistributed to various crypto assets.
- Increase in trade volume is typically followed by a correction in the asset’s price over the short term.
Polygon (MATIC) and Binance Coin (BNB) have witnessed an increase in their trade volume over the past two days. Based on data from crypto intelligence tracker, this increase is typically followed by a correction in the asset’s price.
If history repeats itself, MATIC and BNB prices are likely to experience a pullback in response to the rising trade volume.
MATIC, BNB holders gear up for likely price correction
Experts at Santiment analyzed the trade volume metric for MATIC and BNB, which represents adoption and utility of the tokens among crypto market participants. Both these altcoins have seen a particularly high interest from traders, when compared to other altcoins in the ecosystem.
The interest is evident from the transaction volume chart of MATIC and BNB on Santiment.
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MATIC transaction volume vs price
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BNB transaction volume vs price
For the two assets, there is a spike in transaction volume between July 10 and 12. The increase is accompanied by a spike in price. However, if the trend repeats, traders are likely to engage in profit-taking and push the asset’s price lower in the short term.
Experts at Santiment weighed in on Bitcoin price action and observed that the asset is trading close to the $31,000 level. Once BTC price crosses this key level, profits could circulate to altcoins like MATIC, BNB and other altcoins in the ecosystem.
MATIC and BNB show major volume increase
Capital inflow fuels demand, and this could catalyze a recovery in altcoin prices. However, it remains to be seen whether Bitcoin price breaks past the $31,000 bullish target.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
