Polygon (MATIC) On-Chain Metrics Hint at Mega Rally
Polygon (MATIC), a prominent layer-2 scaling solution for Ethereum, has proven to be a resilient force, as evidenced by its on-chain metrics hinting at a potential mega rally on the horizon. Despite price fluctuations in the fourth quarter of 2023, Polygon attracted an impressive 15.2 million new users in January, setting the stage for what could be a promising journey in 2024.
Polygon’s Current Market Snapshot
As of the latest data from CoinMarketCap, Polygon is currently trading at $0.7921, reflecting a 1.49% increase in the past 24 hours. The 24-hour trading volume stands at $215.6 million, with a market cap of $7.6 billion and a market dominance of 0.38%.
Notably, MATIC is trading above the 200-day Simple Moving Average, indicating a positive trend, and boasting high liquidity based on its substantial market cap.
Technical Analysis and Support Level
Polygon’s potential rally gains credibility when considering the technical aspects. MATIC is currently touching a notable support level, a crucial juncture that could determine its future trajectory. This support level, pegged at $0.75, is seen as a make-or-break point by many traders and has historically served as a stronghold for buyers, acting as a launchpad for potential upward movements.
The resilience of this support is evident through multiple touches over the past weeks, each time successfully resisting a breakdown. While a sustained breach of this support could signal a long-term bear market, the combination of current market conditions and descending volume suggests that the bearish momentum may be subsiding rather than intensifying.
Polygon’s Past Performance and Milestones
In addition to the technical indicators, Polygon has demonstrated noteworthy performance, experiencing an 8.10% surge in price last month. This surge aligned with the broader market trend of altcoins reaching new yearly highs. As revealed in an earlier report, MATIC peaked at $0.93 on Jan. 11, surpassing Chainlink in market cap and securing 13th place among the most valuable projects on the market.
Furthermore, Polygon’s stablecoin market has seen a notable rise, reaching a six-month high of $1.4 billion. This surge reflects the network’s increased transaction activity. As the project continues to expand, it remains one to watch for those seeking opportunities on the blockchain market.