Polygon price has been strong over the past few days, driven by increased whale activity and positive on-chain data. The Polygon network’s underlying assets are up nearly 15% last week and are up more than 7% so far this month. Despite this, the asset remains 22.76% lower year to date.
MATIC price rally
Polygon prices are hovering around their highest levels since August due to increased adoption of the asset and surge in whale activity. MATIC’s overall market capitalization rose more than 4% over the past day to $5 billion, ranking it 12th among digital assets.Day After Toncoin. The total volume of MATIC traded during the same period also increased by 34%.
The main catalyst behind Polygon’s rally is the $20.7 million whale trade recorded earlier this month, according to Santiment. The Polygon network recorded an unusually large surge in holder activity when the whale transferred 37 million MATIC, marking the highest transfer on the network since July. According to Santiment, 37 million MATIC was transferred from Whale PoS to a three-year-old wallet. The move provided some liquidity to the asset, boosting Polygon’s price, while other cryptocurrencies suffered losses.
On-chain data from IntoTheBlock shows a significant increase in whale activity on the Polygon network. At press time, the concentration of large holders in the network was 85%, with large transactions increasing by more than $294 million in the past week. The platform defines large transactions as those larger than $100,000.
Polygon’s increased adoption and usability, driven by scaling solutions and partnerships, has also played a significant role in the asset’s upward trajectory. Projects and platforms integrated with Polygon have fostered the growth of the ecosystem, contributing to increased demand, which has had a positive impact on MATIC prices.
Polygon Price Analysis
According to the daily chart, Polygon price showed a strong upward trend, breaking the important support level at $0.5455. At the time of writing, Polygon is trading 2.88% higher at $0.5833. The digital currency is above and below its 50-day and 200-day exponential moving averages, respectively. The Moving Average Convergence Divergence (MACD) indicator is sending a buy signal.
Therefore, Polygon price is likely to continue rising in the coming sessions as the bulls are keeping an eye on the resistance level of $0.6355. A move above this level would push the 200 EMA towards $0.7270. On the other hand, a move below the immediate support at $0.5455 could push the price lower to find support at $0.5000.
MATIC price chart