Ethereum Watch

• Polygon network has seen a surge in RWA interest, including a recent ECB trial. 
• MATIC traction on the price charts has slowed slightly, with $0.51 as a key price level. 

Polygon [MATIC] founder Sandeep Nailwal has acknowledged rising Real World Asset (RWA) interest in the Ethereum [ETH] L2 network. His remarks followed the European Central Bank’s (ECB) recent bond issuance trial.  

‘So many RWA’s launching on Polygon organically is very encouraging…Polygon POS is already second only to Ethereum mainnet in terms of the RWA value created.’

However, according to RWA.xyz data, the statement was overstated. The platform showed that Polygon was the fifth-largest network based on total market cap, especially in the US tokenized securities market. 

Will the RWA interest boost MATIC price?

The rising RWA interest revealed some positive network effects, as denoted by a surge in MATIC’s daily active addresses, per Sentiment data.

Additionally, the news update on the ECB trial on the network flipped MATIC’s Weighted Sentiment to positive. However, the metric dropped towards the neutral level as of press time, which could dent market sentiment on MATIC. 

At the time of writing, the daily active address also tanked, which could derail further price upside with fewer users engaging with the altcoin. 

MATIC recovery cooled off

On the price front, MATIC surged 3% on 19th July after Nailwal’s remarks. However, MATIC’s overall recovery in July stalled above $0.55 and retraced to $0.51. The mixed reading on key price chart indicators signaled traders’ caution. 

Notably, the RSI (Relative Strength Index) recovered but remained muted below the average level (50). It meant that the recent recovery didn’t gather enough buying pressure to guarantee a stronger upside. 

Additionally, CMF (Chaikin Money Flow) was above average but hovered near the equilibrium level, denoting inflows surged but stagnated in the past few days. 

The above readings suggested that MATIC could struggle to break the overhead hurdle and daily order block above $0.55 (red). 

However, the $0.51 level was also a crucial demand interest level, as shown by the chart and whale order data. 

The bounce at $0.51 was marked by about $26 million in buy orders in the derivatives market on Binance exchange. Additionally, demand surged in the MATIC spot market, with over $500K in bids at the level. 

Hence, given the whale interest and massive volume at $0.51, it was a crucial level for any MATIC speculator looking for market entry into the altcoin. 

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