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Are Polygon’s efforts to go green misfiring due to MATIC’s red resistance

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After the recent successful completion of the Ethereum [ETH] Merge several other tokens benefited from it. And one of them happens to be Polygon [MATIC]. 

The Polygon blockchain, in the past, made several efforts to reduce its network footprint by launching the green manifesto. However, recently it announced that its network footprint had been reduced by 99% thanks to the Merge.

Despite this positive development, MATIC followed ETH with regards to its price action. MATIC’s chart was mostly painted red. At press time, MATIC was trading at $0.8126, which is a negative 9% growth in the last seven days. The alt’s current market capitalization stood at $7,090,824,898.

Source: CoinMarketCap

What’s cooking in the community?

Though there have been several other developments in the community with the potential to push MATIC’s price upward, the stars were not in MATIC’s favor. For instance, MATIC got listed on Binance Card in Argentina. This would allow holders to make purchases at over 90 million merchants across the globe.

However, several on-chain metrics suggest that instead of a hike, we can expect a further drop in the coming days. Santiment’s data pointed out that MATIC’s 30-day Market Value Realized Value (MVRV) ratio registered a downtick. This only pointed towards some darker days ahead.

Moreover, MATIC’s volume also decreased, which in general is a bearish signal. MATIC’s net deposits on exchanges were high compared to the seven-day average, indicating higher selling pressure.

Source: Santiment

Nonetheless, several metrics were also in favor of the token, giving hope for a price surge in the days to follow. Interestingly, after falling considerably in the last month, MATIC’s development activity registered an uptick last week. This can thus, be considered as a positive sign as it reflects developers’ efforts to improve the network.

Moreover, MATIC’s NFT transaction count also increased last week which means a higher number of active users. The hope for better days was further backed by CryptoQuant’s data. MATIC’s Relative Strength Index (RSI) stood in a neutral position, which indicated that the market could head in any direction. 

Source: Santiment

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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