The founder of Polygon [MATIC], Sandeep Nailwal, just posted an essential update for the ecosystem. In the previous 30 days, there were 15 million active addresses on Polygon, he stated. The update, which indicated the network’s popularity, appeared to be quite encouraging for the blockchain. Investors may be ecstatic about MATIC’s on-chain data since they suggested a potential trend reversal. It was discovered by Crypto Quant that MATIC’s exchange reserve was declining, which is a good indicator because it suggested decreased selling pressure.
Additionally, MATIC’s MVRV Ratio was likewise quite low. hence indicating a potential market bottom. However, MATIC’s network expansion had a downward trend and shrank over the course of the week, which may be a warning indicator.
The graph from Sentiment shows that after increasing on November 23, the total number of NFT trades and total NFT trading volume in USD for MATIC dropped.
Despite certain metrics favouring a price rise, market signals suggest that things might become worse. On MATIC’s Exponential Moving Average (EMA) Ribbon, a bearish crossover could be noted, raising the possibility of a protracted downturn. Additionally, there was a sharp decline in the Chaikin Money Flow (CMF), which was terrible news for the token. The Relative Strength Index (RSI) for MATIC fell below the neutral line, suggesting that the days ahead for investors in MATIC might be more difficult.
