Polygon's efforts could have MATIC turning the tides for good. Here's why...
TL;DR Polygon developers announced the launch of the Polygon Solution Provider Network for developers on the chain. MATIC was trading almost 10% down in the last seven days and was positioned in an oversold territory. The MACD indicator suggested bearish momentum, however, the expected developments could have users flocking into the network.
MATIC’s RSI stood in an oversold position at press time, however, this was also an indication of a trend reversal in the works.
Following the launch of the PolygonID, developers on the Polygon [MATIC] network had something to look forward to yet again. Polygon Developers (@0xPolygonDevs) announced the launch of the Polygon Solution Provider Network for developers on the chain.
As per the announcement, the tool would help bring developers and solution providers (SPs) together. The aim of this latest move was to facilitate connectivity between developers and SPs in the Polygon zkEVM ecosystem.
🥁🥁 Devs! Presenting the Polygon Solution Provider Network (SPN) – a discovery and engagement tool that aims to help bring developers and solution providers (SPs) together. 🫂 More, below. pic.twitter.com/blbHN64G9m — Polygon Developers (@0xPolygonDevs) May 9, 2023
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As per the Twitter thread, the network is for developers who often find it difficult to discover and connect with suitable SPs. The tool would offer a direct line of communication between the developers and SPs thus making things easier and more convenient for both these stakeholders.
MATIC’s state of affairs
At the time of writing, data from the intelligence platform Santiment showed that the total amount of holders witnessed a surge over the last month. The total number of MATIC holders stood at 42.02 million and the growth of this metric could be considered impressive.
Furthermore, MATIC’s network growth witnessed a tremendous rise on 7 May. This could be a strong indication that recent developments on the Polygon network were attracting new users. However, MATIC’s social dominance wasn’t at its best but wasn’t at its worst either. The social dominance stood at 1.47% and could be considered positioned in a neutral zone.
All in vain?
At press time, MATIC didn’t seem to be anywhere close to where its metrics were. MATIC was exchanging hands at $0.872 at the time of writing, which was almost 10% down in the last seven days. Furthermore, MATIC was also trading almost 3% lower in the last 24 hours.
MATIC’s Relative Strength Index (RSI) made its way into the oversold territory and stood at 28.82. However, this could be taken as a consideration that a trend reversal could follow in the days to come.
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Additionally, MATIC’s Moving Average Convergence Divergence (MACD) indicator had the signal line dominating at press time. The MACD line (blue) was running under the signal line (red), below the zero line. This was a strong indicator of the ongoing bearish momentum.
The Chaikin Money Flow (CMF) too favored the bears at the time of writing.
However, MATIC could witness a change in its bearish sentiment given the expected developments on the chain. This was because the Polygon SPN tool, which as of 8 May supported only Ploygon zkEVM, will open up for the public roll out. This could have users flocking over the protocol, thus flipping its bearish narrative.