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Can Vitalik’s praise save MATIC from the upcoming bearish storm

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Can Vitalik’s praise save MATIC from the upcoming bearish storm
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  • Polygon became the fourth largest network in terms of TVL after overtaking Avalanche 
  • The metrics were by and large not in favor of MATIC

Vitalik Buterin recently praised Polygon [MATIC] in reply to a tweet about its newly launched zk-EVM, calling it “truly amazing.”

Well, Polygon’s ZK-EVM is a layer 2 construction on top of Ethereum that focuses on improving its scalability through mass transfer processing rolled into a single transaction.

Read Polygon’s [MATIC] Price Prediction 2023-24

Apart from this, Polygon also witnessed a growth in its DeFi space, as its total value locked (TVL) surpassed Avalanche’s. With this development, Polygon rose to fourth place in terms of TVL.

Interestingly, several other positive things also took place in the Polygon ecosystem that looked pretty promising. For instance, the announcement of the official launch of Perp88, which is a decentralized spot and perpetual exchange, on the Polygon network on 15 November. 

In this current bearish market, MATIC’s performance is also quite better than the other cryptos on the top 10 list, as it did not register any massive downticks.

At press time, MATIC was trading at $0.9341 with a market capitalization of over $8.1 billion. A look at MATIC’s metrics shed some light on the situation. 

The situation was tight 

After registering a massive decline, MATIC’s MVRV Ratio went up slightly, which looked quite optimistic for the token. Moreover, CryptoQuant’s data revealed that MATIC’s exchange reserves were declining, which is a bullish signal as it indicated less selling pressure.

However, MATIC’s network growth went down considerably over the last week. The coin’s network activity was also affected, as its daily active addresses declined too. 

Image Source: Santiment

A dark tunnel ahead? 

MATIC’s daily chart revealed the possibility of a price plummet in the coming days, as a few market indicators were not favoring investors’ interest.

According to the Exponential Moving Average (EMA) Ribbon, the bulls still had the upper hand in the market, but things could change soon as the gap between the 20-day EMA and 55-day EMA was shrinking.

The MACD’s reading also supplemented that of the EMA Ribbon’s as it displayed a bearish crossover. Interestingly, the Money Flow Index (MFI) and Chaikin Money Flow (CMF) were both also resting near the neutral position. 

Source: TradingView

 

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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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