**Can Polygon (MATIC) Overcome the $0.5 Threshold in a Bearish Market?**
**CoinChapter.com**
**NAIROBI** – Polygon (MATIC) has recently slipped below the critical support level of $0.5, which has now turned into an immediate resistance point. Currently trading at $0.41, MATIC is susceptible to further declines as the overall market sentiment remains negative.
According to data from Coinglass, MATIC liquidations saw a significant spike on August 6, 2024, with shorts totaling $371.67K compared to just $89.07K in longs. This discrepancy highlights a prevailing bearish outlook among traders, who are expecting additional drops in MATIC’s price.
Moreover, net flow statistics indicate that outflows have exceeded inflows by over 13 million tokens, as traders continue to offload MATIC amidst a downturn in prices.
At this moment, Polygon (MATIC) is priced at approximately $0.4013, marking a 12.34% increase since August 5. This recovery follows a dramatic crash that day, which affected the wider cryptocurrency market, primarily driven by fluctuations in the yen carry trade.
Interestingly, MATIC is witnessing a surge in whale transactions, signifying growing interest from large-scale investors. The MVRV Long/Short Difference stands at -27.48%, indicating many holders are experiencing losses, which may restrict immediate selling pressure. MATIC’s price has previously rallied to $0.812, and this upward trend, alongside increased whale activity, bodes well for the asset’s future prospects.
**Can Polygon (MATIC) Shake Off Its Bearish Trends?**
As of August 6, 2024, Polygon (MATIC) is trading at $0.3989, reflecting a daily increase of 3.77%. The price continues to be under the influence of a descending trendline, which signals ongoing bearish sentiment.
The Fibonacci retracement levels reveal significant resistance areas. MATIC encounters obstacles at $0.4814 (61.8% Fibonacci retracement) and $0.5206 (78.6% Fibonacci retracement). A breakthrough above these points could lead MATIC to challenge the psychologically significant $0.70 level.
The Relative Strength Index (RSI) currently stands at 37.28, indicating that MATIC is nearing oversold territory. This measurement may suggest a potential price reversal should buying pressure increase. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover, with the MACD line positioned below the signal line.
Support is established at $0.327, which is essential for maintaining upward momentum. A fall below this level could result in further declines, potentially targeting the $0.20 mark. Resistance remains robust at the trendline and within the $0.48 to $0.52 range.
**Polygon’s Total Value Locked Surges to $709M with 4.1 Billion Transactions**
In July 2024, Polygon (MATIC) was recognized as the fourth-largest Ethereum scaling solution by total value locked (TVL), reaching $709 million. It ranks behind Arbitrum, Base, and Blast, while surpassing Optimism. The proof-of-stake (PoS) chain managed to process over 4.1 billion transactions in the second quarter of 2024.
The average transaction fee on Polygon was $0.01, representing a 41% drop from the previous quarter, in contrast to Optimism’s Bedrock average fee of $0.06.
Despite recent price struggles, Polygon’s network activity continues to rise. Daily active addresses on its PoS chain experienced a 47% quarter-over-quarter increase, totaling 1.2 million. The network facilitated 452 million DeFi transactions over the past year, valued at $1.5 billion, outperforming Arbitrum, Base, and Optimism.
Furthermore, the Total Value Locked on Polygon’s Polymarket platform surged by 237% quarter-over-quarter, fueled by increased betting activity in anticipation of the U.S. Presidential elections, highlighting its significance in the decentralized finance landscape.