In recent months, the Polygon (MATIC) price has exhibited a degree of stability, which stands in opposition to the substantial increases witnessed in mega-cap altcoins like Solana (SOL), Cardano (ADA), and Avalanche (AVAX).
Some attribute regarding MATIC’s failure to attain a new annual apogee by the end of 2023 to market uncertainty surrounding Polygon’s new native token, ‘POL,’ which was announced in July 2023.
Polygon (MATIC) Users Addition
A recent report from Flipside Analytics indicates encouraging fundamental development indicators that may influence the price movement of MATIC in 2024. Significant expansion occurred in 2023 for Polygon, which gained 15.2 million new user addresses, second only to Ethereum (ETH).
Assumedly, this increase in user count represents user acquisition and adoption rates. The significant surge in the number of newly registered users indicates that the Polygon network is gaining participants at a more rapid pace compared to Bitcoin and other Layer-2 platforms. As additional users interact with the network in 2024, market demand for the MATIC (POL) token may increase if this expansion continues.
MATIC Daily Transaction Surged
The adoption of MATIC by these 15.2 million new Polygon participants for daily transactions may result in a sustained upward trend in prices due to organic market demand growth. In support of this pattern, Polygon has observed a substantial influx of transactions originating from fresh users; over the course of the previous month, new wallets accounted for 37% of daily transactions.
Polygon (MATIC) Plans ‘AggLayer,’
Recently, Polygon Labs, a blockchain project developer specializing in expanding Ethereum, disclosed its intentions to introduce a novel “aggregation layer” by the end of the following month. By utilizing zero-knowledge proofs, this layer endeavors to establish an uninterrupted network of interconnected chains.
Through facilitating the interconnection of diverse layer-1 and layer-2 chains by developers, the AggLayer aims to construct a Web3 network characterized by unified scalability and liquidity. By overcoming the constraints of the conventional blockchain model, this methodology provides users with a cohesive and uninterrupted experience.
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Polygon (MATIC) Technical Analysis
In the daily chart of MATICUSD, the existing bullish trend became volatile after reaching the 1.00 psychological level. As a result, steep selling pressure came with a larger order building from the 1.000 to 0.750 area.
In the volume structure, the high volume level since 16 October 2023 is at 0.836 level, which is above the current price. Moreover, the dynamic 20-day EMA has a beamish slope, followed by a divergence with the MACD Signal line.
Based on this outlook, a bullish rebound with a daily candle above the 0.750 high volume level could be an immediate long opportunity, aiming for the 1.000 and 1.500 areas. However, additional bearish rejection from the 20-day EMA or static 0.8000 level could increase the downside correction towards the 0.600 level.
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