**Can Polygon (MATIC) Overcome the $0.5 Threshold Amidst Bearish Sentiment?**
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NAIROBI (CoinChapter.com)— Polygon (MATIC) has recently fallen below the former support level of $0.5, which has now transitioned to a point of immediate resistance. Currently trading at $0.41, MATIC is at risk of further declines as the market sentiment leans bearish.
MATIC Liquidation chart. Source:
Coinglass
Data from Coinglass indicates a significant rise in MATIC liquidations on August 6, 2024, with short positions totaling $371.67K, in stark contrast to long positions which stood at $89.07K. This disparity points to a prevailing bearish outlook, as traders brace for more price drops in MATIC.
MATIC Exchange outflow chart. Source:
CryptoQuant
Moreover, net flow statistics reveal that outflows have exceeded 13 million tokens, indicating that traders are selling off MATIC amidst declining prices.
MATIC/USD 1-day price chart. Source:
CoinMarketCap
At present, Polygon (MATIC) is priced around $0.4013, reflecting a 12.34% uptick since August 5. This recovery follows a sharp downturn on that date, which affected the broader cryptocurrency market, triggered by fluctuations in the yen carry trade.
MATIC whale transactions count. Source:
Santiment
Polygon (MATIC) is exhibiting a positive trend with an uptick in whale transactions, suggesting growing interest from major investors. The MVRV Long/Short Difference currently sits at -27.48%, indicating that many holders are still facing losses, which may restrain immediate selling pressure. MATIC’s price has seen a steady rise to $0.812, and this upward trend, coupled with increased activity from whales, hints at an optimistic outlook for the asset.
**Is Polygon (MATIC) Poised to Escape Its Bearish Hold?**
As of August 6, 2024, Polygon (MATIC) is trading at $0.3989, representing a 3.77% daily increase. Nevertheless, the price remains under the influence of a descending trendline, reflecting ongoing bearish sentiment.
MATIC/USD 1-day price chart. Source:
TradingView
Fibonacci retracement levels delineate important resistance areas. The price encounters challenges at $0.4814 (61.8% Fibonacci retracement) and $0.5206 (78.6% Fibonacci retracement). A breakthrough above these points could see MATIC targeting the psychological barrier of $0.70.
The Relative Strength Index (RSI) stands at 37.28, suggesting that MATIC is nearing oversold conditions. This could signal a potential reversal if buying activity escalates. Concurrently, the Moving Average Convergence Divergence (MACD) indicator is displaying a bearish crossover, with the MACD line positioned below the signal line.
Key support is identified at $0.327, a vital level for sustaining upward momentum. A decline below this could initiate further drops, potentially aiming for the $0.20 mark. Resistance remains strong at the trendline and within the $0.48 to $0.52 range.
**Polygon TVL Reaches $709M with 4.1B Transactions**
In July 2024, Polygon (MATIC) secured its position as the fourth-largest Ethereum scaling solution by total value locked (TVL), amounting to $709 million, trailing behind Arbitrum, Base, and Blast, while surpassing Optimism. Its proof-of-stake (PoS) chain accounted for over 4.1 billion transactions in Q2 2024.
Polygon’s average transaction fee was recorded at $0.01, a 41% decrease from the previous quarter, especially when compared to Optimism’s Bedrock average fee of $0.06.
Polygon PoS has processed over 4.1 billion total transactions. Source:
Today In Polygon
Despite recent pricing pressures, Polygon’s network activity is on the rise. Daily active addresses on its PoS chain surged by 47% quarter-over-quarter, reaching 1.2 million. The network facilitated 452 million DeFi transactions over the past year, valued at $1.5 billion, outpacing Arbitrum, Base, and Optimism.
Polygon Total Value Locked. Source:
Messari report
Moreover, Polygon’s Polymarket platform experienced a remarkable 237% quarter-over-quarter increase in TVL, driven by heightened betting activity ahead of the U.S. Presidential elections, highlighting its significance within decentralized finance.