The number of active SushiSwap wallets is greater on the MATIC Main Net now than the number on Ethereum. Furthermore, AAVE is reporting higher volumes on the MATIC network than on the Ethereum network. Low gas fees and lightning fast transaction speeds are growing the Polygon user base quickly. The Polygon Mainnet Explorer, now available via Chainstacklabs.com reflects an average block time of 2.1 seconds, 1,439,982 wallet addresses, and over 215 million transactions. The tx/day stands at 6.17 million. Polygon is rapidly growing.
Over the last two days, we've seen an uptick in the MATIC buyers exchanging Ethereum for MATIC. On the other side of the coin, MATIC sellers tend to be moving into USDT and DAI. Therefore LP farmers are seeing gains on the Ethereum side of the exchange. Note the vector candles the past two days.
Meanwhile, MASK Network, which bills itself as "The Portal to the New, Open Internet" announced that its integration with MATIC and the BINANCE Smart chain network signals "the beginning of the Web 3.0 multi-chain era." Also, MATIC/USD is now one of 16 Layer 2 perpetual markets featured on the dYdX platform. Adoption is growing for Polygon MATIC. The listing allows traders outside of the United States to use up to 10X leverage on MATIC/USD trades.
The catalysts added up to a 22% move for the coin.
We can observe a clear break out of the bullish declining wedge that had formed. We also have to note the trend on daily volume, however, which informs us that a retrace could be around the corner. However, a bullish close over the .50 Fibonacci retracement line at $1.57 signals that a retrace would be quick, clearing the way for further gains. Look for a possible retrace to the mid 1.4's (roughly 11% down) before Polygon starts reaching for higher targets. In the immediate term, there are walls of resistance around 1.73 (the immediate resistance), 1.94 and 2.02. In the most bullish scenario, price may go looking for 2.25 before cooling off again.
The Hourly chart paired with its MACD counterpart reflects the interest in MATIC rallied over the weekend and is pushing into this week. Finally, I want to pull all the way back and observe the progress Polygon has made since its introduction/rebranding earlier in 2021.
Note the behavior of the longer-term MACD setting up for a potential bullish cross.
Long-term targets remain over $3 for Polygon MATIC.
