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What can spur Polygon’s [MATIC] bullish trend? Analyzing…
- Polygon [MATIC] continued on its consecutive rise at press time.
- Its social dominance rose with the introduction of the Polygon domain.
There have been many recent periods of uptrend activity on Polygon [MATIC], suggesting that the cryptocurrency has emerged from the doldrums it was mired in since 18 February. With the token garnering some attention in terms of social volume, its movement on exchanges is something that investors can keep monitoring.
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Polygon sees positive social volume
As per Santiment’s chart, Polygon has experienced a boost in its social volume. The observed chart indicated that the last time MATIC experienced such an uptrend was in August. According to Alicharts, this shift was also suggestive of optimistic attitudes that could benefit the asset’s price. As of this writing, the social volume metric was over 1,000, and the weighted sentiment was over 2.2.
Source: Santiment
Did the price increase in tandem with the social volume?
MATIC on a daily timeframe
Until 10 March, the daily timeframe chart of MATIC had trended downward for several weeks. However, the token reversed course on the aforementioned date, having increased by over 20% and trading at about $1.24 as of this writing.
Source: TradingView
Furthermore, the trend reversal was strong enough to shift the asset’s trend from bearish to bullish. According to the Relative Strength Index (RSI), MATIC crossed the neutral line. A weak bullish sentiment was also indicated by the Moving Average Convergence Divergence (MACD), which revealed that it had shifted to the upside.
The volume metric has also been increasing with the recent price increase. The volume was above 979 million as of the time of writing and was getting close to one billion.
Source: Santiment
Observing the trend of the flow
The Exchange NetFlow of Polygon provided additional evidence of the strength of the present bullish trend. As per CryptoQuant, since the advent of the price increase, there have been large inflows and outflows into exchanges. With over 31 million MATICs leaving exchanges as of this writing, the outflow was the overwhelming trend.
Source: CryptoQuant
Realistic or not, here’s MATIC market cap in BTC’s terms
Introducing the Polygon domain
On 14 March, Polygon announced that it would partner with Unstoppable Web to introduce the Polygon domain. In addition to enabling users to create a portable identity across over 750 dApps, games, and metaverses, Polygon domains enable the creation of a digital identity. The Polygon domain could benefit the network in a manner akin to the Ethereum Name Service (ENS).
Given the outflow volume and Polygon’s bullish tendency, a further increase may be in store.
