by - Polygon’s active addresses reached 15 billion last month
- The reading of the MVRV Ratio indicated that the bottom might be near
Sandeep Nailwal, the founder of Polygon [MATIC], recently tweeted an important update for the ecosystem. He revealed that Polygon’s active addresses reached 15 million in the last 30 days. The update looked quite promising for the blockchain as it represented the popularity of the network.
15 million active addresses on @0xPolygon the last 30 days.
Let it sink in! pic.twitter.com/PXqfpi7bFJ
— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) 26 November 2022
Read Polygon [MATIC] Price prediction 2023-24
Not only that, but Polygon’s DeFi ecosystem has also witnessed growth recently. Data from DeFiLlama revealed that Polygon’s total value locked (TVL) recorded an increase and stood at $1.49 billion at the time of writing.
Polygon also made news for its growth in several aspects, including the NFT ecosystem. A few days ago, MATIC outcompeted Ethereum and Solana by registering a 71% increase in NFT sales volume in the last month alone.
However, this development was not reflected in MATIC’s daily chart. Nevertheless, the tide may turn soon, as according to data from CoinMarketCapMATIC’s price decreased by 0.52% in the last week. At the time of writing, it was trading at $0.8559, with a market capitalization of more than $7.4 billion.
Signs of revival for Polygon
MATIC‘s on-chain calculations may please investors, as they pointed to the possibility of a trend reversal. CryptoQuant revealed that MATIC’s foreign exchange reserve was on the decline, which is a positive sign as it indicated less selling pressure.
Moreover, MATIC’s MVRV ratio was also significantly low. Thus suggesting a possible market bottom. However, MATIC’s network growth followed a southward trend and slowed during the week, which could be a sign of trouble.
Source: Sentiment
Furthermore, according to Santiment’s diagram, MATICTotal NFT trades and total NFT trade volume in USD decreased after increasing on 23 November.
Source: Sentiment
The problem is far from over
Although a few calculations supported a price increase, things could turn uglier, as suggested by the market indicators. MATIC‘s EMA (Exponential Moving Average) band showed a bearish crossover, which increases the chances of a continued downtrend.
Chaikin Money Flow (CMF) also dropped sharply, which did not look good for the token. MATIC’s Relative Strength Index (RSI) rested below the neutral mark, suggesting that days for MATIC investors could be tougher.
Source: TradingView
