The token price is gaining traction as on-chain data suggests a positive trend that will extend into the coming days.
The price of Polygon (MATIC) has risen by 27% since the beginning of this week and, as of Thursday, continues to trade up by 0.5%. Data on the chain show that MATIC’s Total Value Locked (TVL) is increasing, Open Interest (OI) is on the rise, and the ratio of long to short positions is above onesuggesting a continuation of Polygon’s bullish movement in the coming days.
Data from crypto intelligence tracker Artemis shows that MATIC’s TVL increased from $853.53 million on Monday to $916.70 million on Thursday, rising steadily since Aug. 5.
This 7.5% increase in TVL indicates growing activity and interest within the Polygon ecosystem. This suggests that more users are depositing or using assets on MATIC-based protocols.which reinforces the bullish outlook.
What Polygon’s data reflects
CoinGlass data shows that OI on Polygon futures on exchanges is also increasing. The OI indicates the total number of outstanding derivative contracts that have not been settled. (offset by delivery) and whether cash flows into the contract are increasing or decreasing.
An increasing OI represents new or additional money entering the market and new purchases, suggesting an uptrend. When OI decreases, it is usually a sign that the market is selling off, more investors are exiting, and the current price trend is ending.
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The chart below shows that MATIC’s OI increased from $114.74 million on Monday to $209.39 million on Thursday, the highest OI since mid-June. This indicates that new or additional money is entering the market and new purchases are being made..
According to data from CoinGlass, the ratio of MATIC long to short positions on Binance is 1.56. This ratio reflects bullish sentiment in the market, as a number above one suggests that more traders anticipate an increase in the asset’s price, reinforcing Polygon’s bullish outlook.
Source: Ambito
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