Polygon price has been on a strong bullish trajectory for the past few days on the back of increased whale activity and positive on-chain data. The native asset of the Polygon network has climbed by nearly 15% in the past week and is up by more than 7% in the month to date. Even so, the asset remains 22.76% lower in the year to date.
MATIC Price Rally
Polygon price has been hovering around its highest level since August following an increase in the asset’s adoption and a jump in whale activity. MATIC’s total market cap has increased by more than 4% over the last day to $5 billion, ranking the digital asset 12th after Toncoin. The total volume of MATIC traded over the same period has also edged higher by 34%.
According to Santiment, the key catalyst behind Polygon’s rally is the $20.7 million whale transfer recorded at the start of the month. The Polygon network recorded an unusually large holder activity spike when a whale transferred 37 million MATIC, marking the highest transfer on the network since July. According to Santiment, 37 million MATIC was transferred from a whale PoS to a three-year-old wallet. This move pumped some liquidity into the asset, pushing the Polygon price higher, while other cryptocurrencies sustained losses.
On-chain data by IntoTheBlock has also revealed a significant increase in whale activity in the Polygon network. At press time, concentration by large holders on the network was at 85%, while large transactions grew by more than $294 million in the past week. The platform defines transactions greater than $100K as large transactions.
The increase in Polygon’s adoption and utility, on the back of its scaling solutions and partnerships, has also played a major role in the asset’s upward trajectory. The projects and platforms integrated with Polygon have prompted growth in its ecosystem, contributing to its rising demand, hence resulting in a positive impact on the MATIC price.
Polygon Price Analysis
The daily chart shows that the Polygon price has been on a strong upward trajectory, breaking above the crucial support level of $0.5455. At the time of writing, Polygon was trading 2.88% higher at $0.5833. The digital currency remains above and below the 50-day and 200-day exponential moving averages, respectively. Its Moving Average Convergence Divergence (MACD) indicator is giving a buy signal.
As such, the Polygon price is likely to continue moving higher in the ensuing sessions as bulls eye the resistance level at $0.6355. A move past this level would prompt subsequent gains to the 200 EMA at $0.7270. On the flip side, a move below the immediate support at $0.5455 could push the price lower to find support at $0.5000.