Polygon price has experienced a significant rally in recent days, driven by increased whale activity and positive on-chain data. The native asset of the Polygon network, MATIC, has seen a growth of nearly 15% in the past week and over 7% in the month to date. However, despite this recent surge, the asset remains 22.76% lower in the year to date.
The price rally of MATIC can be attributed to several factors. Firstly, there has been a notable increase in the asset’s adoption and utilization. The Polygon network has gained traction due to its efficient scaling solutions and partnerships with various projects and platforms. This growth in its ecosystem has contributed to rising demand for MATIC, resulting in a positive impact on its price.
Additionally, whale activity has played a significant role in driving up the price of Polygon. Santiment, a cryptocurrency data provider, reported a $20.7 million whale transfer at the beginning of the month. This transfer involved 37 million MATIC tokens, marking the largest transfer on the network since July. The liquidity injection from this massive transfer has propelled the Polygon price higher, while other cryptocurrencies experienced losses.
On-chain data from IntoTheBlock has also revealed a significant increase in whale activity within the Polygon network. The concentration of large holders in the network currently stands at 85%. Furthermore, large transactions worth over $294 million have taken place in the past week. Such transactions, defined as amounts greater than $100,000, indicate a strong interest from institutional or high-net-worth investors.
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Looking at the price analysis, the daily chart shows that the Polygon price has been on a strong upward trajectory. It has surpassed the crucial support level of $0.5455 and is trading around its highest level since August. At the time of writing, Polygon is trading at $0.5833, a 2.88% increase from the previous day. The digital currency remains above the 50-day exponential moving average and below the 200-day exponential moving average. The Moving Average Convergence Divergence (MACD) indicator is currently giving a buy signal.
Based on this analysis, it is likely that the Polygon price will continue its upward movement in the coming sessions. Bulls are eyeing the resistance level at $0.6355, and a breakthrough could lead to further gains towards the 200-day exponential moving average at $0.7270. On the downside, a drop below the immediate support at $0.5455 could push the price lower to find support at $0.5000.
In summary, the recent rally in the Polygon price can be attributed to increased whale activity, positive on-chain data, and the asset’s growing adoption and utility. As the Polygon network continues to expand its partnerships and improve its scaling solutions, MATIC is likely to maintain its upward trajectory in the near future.
