- Polygon becomes the investors' and developers' darling Ethereum-based altcoin.
- High network interaction and improving network growth are massive bullish signals.
- Overbought levels based on the RSI could lead to correction in the near term.
Polygon majestic rally seems unstoppable toward $1. Support at $0.8 played a key role, as discussed on Thursday, which explains the liftoff to $0.9. Currently, technical and on-chain levels align for an upswing above $1.
Polygon robust on-chain metrics secure the uptrend
The active addresses on-chain metric by Santiment highlights all the addresses involved in transactions each day on the MATIC network. It reveals the current speculation level within the community. As more addresses transact on the network, investors tend to bet on the price, hitting a higher level. Therefore, as illustrated on the chart, a spike in this metric is a massive bullish signal.
Polygon 24-hour active addresses
A similar growth pattern has been observed with the number of new addresses joining the network every day. According to Santiment, the metric shines a light on user adoption over time. An increase or decrease in the addresses identifies whether the network is losing or gaining traction. Note that a spike, such as the one shown on the chart, is a colossal bullish signal that will likely support MATIC's uptrend past $1.
Polygon new addresses metric
It is worth mentioning that the slighted resistance path is upward, as emphasized by the Moving Average Convergence Divergence (MACD) indicator on the four-hour chart. As the indicator moves higher in the positive region, the bulls' grip intensifies. Therefore, a confirmed break above $0.9 could spur investor speculation for gains past $1.
Note that formidable support has been established at $0.8. Holding above this zone will keep the bulls' focus on $0.9 and $1, respectively.
MATIC/USD four-hour chart
On the flip side, the Relative Strength Index (RSI) on the four-hour chart is in the middle of a retreat from the overbought region. Extending the movement toward the midline would mark the beginning of a significant correction. Moreover, closing the day under $0.8 would trigger intense losses as investors cash out for profit in panic.