- Recent data shows that whales accumulate MATIC aggressively amidst the ongoing broad market correction that has seen the asset trading below $0.7.
- Interestingly, an analyst has observed the formation of a bullish trend that could see MATIC surging to $0.95 and $1.29.
Polygon’s native token MATIC takes a marginal turn in a 1% positive run to hit $0.66 weeks after consistently breaking away from its targeted price. However, the price of the asset is still 34% down from year-to-date and 31% down in the last 30 days.
Taking advantage of this correction, whales have embarked on a buying spree, signaling a bullish outlook on the layer-2 blockchain. According to Lookonchain data, an unidentified whale has withdrawn 1.9 million MATIC tokens ($1.41 million) from the Binance exchange to a decentralized on-chain wallet. The data further discloses that the whale made multiple withdrawals in AVAX ($1.86 million), FET ($1.45 million), GRT ($1.44 million), OP ($1.29), and RNDR ($1.26 million).
Subjecting MATIC to technical analysis was crypto analyst Scalping, who noticed the formation of a broadening wedge pattern in its daily chart. Speaking to his X followers, Scalping predicted that the bullish setup would be triggered if the asset could hold its position above $0.63 by the end of the day. According to him, MATIC, upon meeting the above condition could surge to $0.95, then proceed to hit its second target at $1.29.
Interestingly, its previous run that saw MATIC trading above $1 from February 21, 2021, remains fresh in the minds of investors. The asset suddenly plunged below this zone after the April Fool’s Day and has since struggled to bounce back.
Polygon (MATIC) Booming Network Activities Could Trigger the Bull Run
Research into its latest network activities discloses that MATIC has enough technical reasons to move in a positive trajectory as predicted by analysts. According to data, the Polygon’s Proof of Stake (PoS) network has surpassed 1 million daily active addresses. Interestingly, this has been the case for a continuous period of 25 days, signaling a sustained increase in network usage.
In addition to this, Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) have equally witnessed a massive surge in interest in the past few weeks.
A Crypto News Flash (CNF) review of Dune Analytics’ data shows that Polygon has witnessed growth in terms of both Decentralized Exchanges (DEX) and revenue generated. Unfortunately, the Total Value Locked (TVL) by the network has significantly declined within the period.
As interpreted by analysts, the booming new users and trading activities are not translating into users locking more funds in Polygon’s DeFi protocol. Another reason that could perfectly explain the declining TVL is that users might be moving their funds to alternate platforms offering better yield.
Regardless, Polygon is focused on advancing the capabilities of its ecosystem with its co-founder Brendan Farme recently disclosing the possible implementation of the EIP-4844 proposal. Drawing insight from a Crypto News Flash publication, Polygon Labs CEO Marc Boiro believes that this upgrade could reduce the proving cost which in the long run may drive mass adoption for its native token.
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