The Polygon MATIC price has been relatively stable on the daily chart, in spite of the fact that it has been increasing rapidly over the past week. According to on-chain metrics, bears have a good chance of taking the lead now.
Investors and traders were getting more excited about MATIC after the price started rising significantly in early December. In terms of market capitalization, MATIC is currently ranked tenth and has shown a strong 8.5% gain over the previous seven days. But can it maintain the current level of success?
The number of daily active addresses and daily new MATIC addresses have been decreasing. In the past week, both the number of new and active addresses have decreased; the former by 15.94% and the latter by 10.69%.
The MATIC price increased from November 27 to December 1, and so did the number of addresses that were active each day.
Nonetheless, they too began to decline alongside prices beginning on December 1. Decreases in the number of operational IP addresses are often an early warning sign of waning bullish expectations in the market.
MATIC’s declining network growth is mirrored by a similar trend elsewhere. this, along with the slowing expansion of the underlying network, does not bode well for the future value of the asset.
Additionally, MATIC’s 7-day MVRV is trending downward. Short-term MATIC investors stand to lose money if the price continues to fall. Even long-term holders were back in the red, as MATIC’s 30-day and 365-day MVRV were both in the red.
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