Polygon: This milestone could draw investors’ attention to MATIC as…

Polygon: This milestone could draw investors’ attention to MATIC as…

  • Polygon’s zkEVM has crossed 14,000 transactions since launch
  • MATIC statistics seemed in favor of a price increase in the coming days

Sandeep Nailwal, the co-founder of Polygon [MATIC], recently posted an update on Polygon’s zkEMV. According to Sandeep, the zkEVM recently passed the 14,000 transaction mark, also with no downtime.

This was an important development for the blockchain. In addition, the number of addresses also increased and reached a number of more than 5,900.

However, this Polygon performance did not reflect on the MATIC chart as the price registered a weekly negative gain of 15%. This can be a problem for investors. CoinMarketCaps data revealed that at the time of writing, MATIC was trading at $0.7977 with a market cap of over $6.9 billion.

Read Polygons [MATIC] Price prediction 2023-24

MATIC‘s on-chain metrics shed some light on the current scenario and provided insight into what investors can expect from MATIC in the coming weeks.

Are these developments enough?

Interestingly, some of the on-chain stats suggested that the investors could be in for a surprise with the price increase of MATIC in the coming days. For example, the market value to realized value (MVRV) ratio of MATIC fell significantly. This could be an indication of a possible market bottom.

In addition, MATIC’s social volume was also consistently high, reflecting the popularity of the token in the crypto community. Moreover, MATICThe company’s volume also registered an increase, which was generally a positive signal for the blockchain.

Source: Sentiment

Another bullish signal was revealed by CryptoQuant’s data, indicating that MATIC’s stochastic was in an oversold position. This reinforced the possibility of a trend reversal in the coming days.

Interestingly, the MATIC play space has also been quite active. Polygon has been investing in gaming for quite some time, and recently its gaming wallets saw a 50% increase, while the total number of active wallets on-chain increased by 30%. This was also good news for the network.

Not all great on this side of the chain

While most of the market indicators for the rally were MATIC’s, not everything worked in MATIC’s favour. MATIC’s net investment in exchanges was high, indicating higher selling pressure.

The total number of transactions also showed a downward trend. This did not look promising for MATIC. The network’s NFT ecosystem also registered a decline over the past week as the total number of NFT trades and USD trading volume declined.

Source: Sentiment

MATICThe daily chart indicated that the bulls were losing momentum and the bears were starting to gain an advantage in the market. The exponential moving average (EMA) ribbon revealed that the distance between the 20-day EMA and the 55-day EMA was narrowing at a decent pace. This could increase the likelihood of a bearish crossover.

The reading of the Moving Average Convergence Divergence (MACD) complemented that of the EMA Ribbon as it also suggested a bearish upper hand. MATIC’s Relative Strength Index (RSI) registered a slight downtick and rested below the neutral mark, which could spell trouble for MATIC’s potential uptrend.

Source: TradingView

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