MATIC, the native cryptocurrency of the Polygon blockchain has been showing strength and strong signs of reversal. Several on-chain metrics suggest that Polygon (MATIC) is all set for its next journey northwards.
Following the crypto market meltdown of May, Polygon (MATIC) made a sharp V-shape recovery. However, the cryptocurrency faced major rejections at some of the key resistance levels. Since then, Polygon (MATIC) has been trading sideways and has been facing multiple rejections at different resistance levels, until recently, where it managed to break past the $1.45 resistance setting up the trend reversal.
On-chain data provider Santiment presented the data shows how Polygon (MATIC) has formed a higher low for now while making $1.50 as its new support level.
Key On-Chain Metric for Polygon
The daily active addresses for MATIC have been consistently growing for the last few months and continue even today. This growth in active addresses certainly adds to a bullish case scenario for MATIC.
During last month’s crypto meltdown, the MATIC supply on the exchanges was on the rise thereby acting as a selling pressure for the crypto. But once again, the supply at the exchanges has been on a decline. These are some encouraging signs of forming a bull case scenario.
Although MATIC has moved past the resistance trendline, one thing to watch out for is that the on-chain data still shows some sign of selling pressure. In the below chart, we can see that with every price rise, there’s a surge in the daily active deposits as well. This clearly shows that a good number of investors are using these price spikes to exit their position.
The Polygon blockchain network has been through some big news recently. Last month, tech billionaire Mark Cuban announced major funding for this Indian blockchain startup thereby drawing the attention of some big players in the market.
Besides, Polygon (MATIC) has also made an entry into the Institutional-Grade Bitwise 10 Large Cap Crypto Index ahead this month.