Polygon is all green, but MATIC may bring some red to the table

Polygon [MATIC] has become one of the most popular networks for Web3 projects. It has always claimed to be an eco-friendly blockchain with a more energy-efficient PoS consensus mechanism. 

Recently, Mihailo Bjelic, a Twitter influencer, uploaded an image pointing out the advantages of Polygon. The tweet highlighted several data points. One such point was that one transaction on Polygon emits 8.5 times less carbon as compared to the amount released while sending an email. 

Lately, Polygon developers have been working increasingly on the network to improve it and have also partnered with several platforms to help Polygon achieve new heights. While these developments occurred, MATIC gained steady upward momentum last week by registering over 14% seven-day gains. 

At press time, MATIC traded at $0.879 with a market capitalization of $6,484,485,176. Looking at the developments, including the recent Robin Hood listing, hint that the surge was legitimate, but can the alt show some updside?

Here is the scenario 

As mentioned earlier, the developers’ activity in the Polygon network increased considerably. This is a good sign as it reflects the efforts made by developers to strengthen the blockchain. After being downwards for some time, MATIC’s Market Value Realized Value (MVRV) ratio also gained an uptrend in late August as the price started to surge. 

Source: Santiment

Additionally, as per MATIC’s four-hour chart of 2 September, indicators painted a bullish scenario. These indicators further pointed towards a buyer’s advantage. The 20-day EMA flipped the 55-day EMA, which is a strong bull signal.

Source: TradingView

Additionally, the Bollinger Bands (BB) also pointed out that MATIC’s price might soon enter a high volatility zone. This further increases the chances of a northbound breakout. However, the Chainkin Money Flow (CMF)’s reading showed a bearish divergence, as the price went up but CMF registered downward movement.

Then what’s wrong?

While most of the on-chain metrics were in favor of a certain price hike, a few of them tell a different story. For instance, CryptoQuant’s data indicated that the market was in a neutral position, which means that things could head in any direction.

Source: CryptoQuant

Moreover, exchange net deposits were higher than the seven-day average, which might indicate increased selling pressure. Therefore, the direction in which MATIC’s price moves is quite ambiguous. But as the majority suggest positive results, a further surge in MATIC’s price is much more likely.