Polygon (MATIC) continues to move steadily above the $0.50 support level, with the altcoin gaining resistance against Bitcoin (BTC) over the weekend. Key on-chain indicators may increase speculation that investors will hodl MATIC for a longer period to further advance its price recovery efforts.
As bulls defend the critical support level over the weekend, Polygon (MATIC) price remains well above $0.50. Key on-chain indicators suggest that holders believe MATIC’s mission could be compromised. As MATIC price recovers from its dip level of $0.48 in 2023 and reclaims $0.52, confidence in the Polygon ecosystem seems to be gradually returning. On-chain data may indicate that the recent increase in Polygon network activity is behind the ongoing price surge.
The CryptoQuant chart shows that the Polygon network recorded 4,621 transactions on September 22. This could potentially be the highest network inflow in over 50 days. The transaction count metric can estimate the level of economic activity in a blockchain network by tracking the daily number of confirmed transactions. Such a significant increase in network activity may signify demand for the underlying native token.
However, as of September 25, MATIC’s price sits at $0.51, resulting in an 8% price increase. However, after reaching a 50-day peak with 4,621 transactions on September 22, MATIC failed to reach the 4,000 level in subsequent trading days. This situation may raise questions about whether the current level of participation in the Polygon network is sufficient to further propel MATIC prices. In early September, Binance announced that it would delist assets hosted by Polygon from its NFT Marketplace on September 26.
In response to the bearish news, MATIC holders moved 3.5 million tokens to exchanges within 72 hours after the September 8 announcement, increasing the total MATIC token count in exchange-held wallets to 983.7 million. Additionally, the negative sentiment surrounding currency inflows eventually sent the MATIC price to $0.48 on September 11. However, since then, MATIC holders have been unable to reverse the downward trend. Despite a noticeable price increase since September 11, MATIC reserves currently stand at 982.3 million tokens.