Polygon Sees 200% Surge in Crucial Metric: How Could This Benefit MATIC?

Overview of Polygon’s Active Addresses Surge

Since the beginning of the year, Polygon has seen a remarkable 200% increase in active addresses, indicating substantial growth in user activity.

MATIC Market Analysis

Trader interest in MATIC has fluctuated recently:

  • Despite a surge in network activity, MATIC’s price fell by 19%.
  • Prior to the price drop, MATIC showed sideways movement without a clear trend.
  • Post-correction, MATIC entered a bearish trend, marked by lower lows and lower highs.

To reverse this trend, MATIC needs to surpass the $0.6346 resistance level and target $0.6886.

The Relative Strength Index (RSI) stood at 52.65, indicating some bullish momentum, while the Awesome Oscillator (AO) showed negativity, suggesting weaker short-term price movement.

MATIC On-Chain Metrics

Despite price fluctuations, MATIC’s on-chain metrics reflect positive signs:

  • Network growth for MATIC has been significant, suggesting increasing interest from new users.
  • Trading velocity for MATIC has also risen, indicating higher trading frequency.
  • Notably, new addresses accumulating MATIC tokens were mostly from retail investors, as larger holders (over 10,000 MATIC tokens) were observed selling their holdings.

Market Sentiment and Open Interest Trends

While retail spot traders showed interest in accumulating MATIC:

  • Open Interest in MATIC futures and options dropped significantly after April 1st, suggesting decreased trader confidence in future price movements.