On March 24, the metric Polygon [MATIC] saw a massive surge in transactions, surpassing $40 million in value. MATIC was the only top-10 cryptocurrency to register these figures. In addition to Polygon, Fetch [FET] and The Sandbox [SAND] experienced similar growth. It was also interesting to note that whale MATIC accumulation was increasing. According to Santiment’s chart, the supply of MATIC held by top addresses increased over the last week, reflecting investors’ confidence in the token.
Not only did whales accumulate more MATIC, but they also grew in other ways. For example, Dune’s chart showed that MATIC’s unique users were increasing, indicating increased network usage and adoption. Though there were several factors contributing to this growth, one of them is MATIC’s recent partnership with Immutable, a leading Web3 gaming platform.
While the number of unique addresses was increasing, NFT sales were decreasing. MATIC’s NFT sales volume fell by more than 38% in the last seven days, according to CRYPTOSLAM’s chart. Furthermore, after peaking in late February 2023, MATIC weekly volume on Polygon marketplaces fell precipitously.
Despite the NFT ecosystem’s decline, Polygon Daily, a popular Twitter handle that posts updates on the network’s progress, tweeted about the most traded NFT collection on OpenSea. According to the tweet, CollectTrumpCards topped the list once again, followed by The Sandbox and Lens Protocol.
In terms of on-chain performance, things were looking up for MATIC. For example, MATIC’s exchange reserve fell, indicating less selling pressure. The supply of the token outside of exchanges has also increased, which is a typical bull signal.
MATIC’s network growth remained high last week as a result of the massive surge in transactions, indicating that more new addresses were used to transfer MATIC. Furthermore, more tokens were transferred among multiple addresses, as evidenced by MATIC’s spiking velocity on March 21.
Despite the fact that the metrics were fine, MATIC’s price action has recently turned bearish. According to CoinMarketCap, the token’s price has dropped by more than 1.8% in the last 24 hours. It was trading at $1.11 at the time of writing, with a market capitalization of more than $9.6 billion. Polygon’s daily chart also suggested a bearish outlook and further price decline.
The MACD indicated that a bearish crossover was possible. MATIC’s Relative Strength Index (RSI) fell slightly, indicating a bearish trend. The Bollinger Band results showed that MATIC’s price was in a less volatile zone, reducing the likelihood of a northbound breakout in the near term.
The token’s Money Flow Index (MFI) remained bullish, moving above the neutral level. When combined with the upcoming zkEVM launch, a trend reversal cannot be ruled out.
