Polygon has been grabbing the headlines in recent days. Its native token MATIC has been pushing towards the $1 resistance with all force. The development updates on Polygon provided a solid foundation for MATIC to flourish in. Now, on-chain metrics are suggesting that $1 could be the very next target.
And upwards we go
The euphoria surrounding Polygon reached a new height on 18 July as MATIC crossed the $0.90 mark. This followed after the token shot off the roof in a 19.5% bullish surge post 17 July.
Analytics firm Santiment reported that MATIC jumped by 63% in the past week with a rampant increase in network activity.
In the third quarter of 2022, projects like MATIC “have made up for its losses quickly.” It goes on to show that address activity has also been rising, showing an “intriguing divergence.”
📊 #Altcoins spent the first half of 2022 seeing market cap gains being flushed rapidly. However, projects like $MATIC have made up for some of its losses quickly, jumping +63% in a week. Address activity is also rising, showing an intriguing divergence. https://t.co/eJ3hMbkE2N pic.twitter.com/cz2gxvaOlL
— Santiment (@santimentfeed) July 18, 2022
The development activity has played a crucial role in the recent upturn of fortune for Polygon.
Data-dive
Key metrics on Polygon are clearly in favor of bullish momentum. The MVRV ratio (30-day), at press time, was touching a monthly high of 58.4%. This is further suggestive of the profitability of MATIC traders in the short-term scenario.
Source: Santiment
Historically speaking, wherever the whales go the sharks follow suit. As we can see from the data below, whale transactions on Polygon are starting to pick up gradually. This could be a good sign for MATIC’s long-term holders.
Source: Santiment
The unprecedented growth has not gone unnoticed by the community on social media. The social dominance metric has seen a rapid increase in the past few days.
This is a direct result of the development activity and price surge which has added to the celebrations of the community.
Source: Santiment
Can MATIC hold its fort even when the temporary rally loses pace? Well, only time can answer.
As of this writing, the transaction volume on the Polygon network was 70% high since the last day. This shows MATIC reaching $1 could be a reality soon. But a pattern of consistency must be built to break through the current resistance.