### Can Polygon (MATIC) Overcome the $0.5 Threshold Amidst Bearish Trends?
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NAIROBI (CoinChapter.com) — Polygon (MATIC) has recently fallen below the crucial $0.5 support threshold, which now acts as immediate resistance. Currently trading at $0.41, MATIC is at risk of further declines as the prevailing market sentiment remains pessimistic.
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, starkly outpacing long positions which stood at $89.07K. This disparity points to a bearish outlook, as traders expect continued decreases in MATIC’s value.
MATIC Exchange outflow chart. Source: CryptoQuant
Moreover, net flow statistics reveal outflows exceeding 13 million tokens, indicating that traders are offloading MATIC amid declining prices, outpacing inflows.
MATIC/USD 1-day price chart. Source: CoinMarketCap
At present, Polygon (MATIC) is priced around $0.4013, reflecting a 12.34% increase since August 5. This uptick follows a significant market crash on the same day, which was triggered by fluctuations in the yen carry trade that affected the broader cryptocurrency landscape.
MATIC whale transactions count. Source: Santiment
Polygon (MATIC) is exhibiting positive signs with an increase in whale transactions, indicating heightened interest from major investors. The MVRV Long/Short Difference stands at -27.48%, suggesting that many holders are still experiencing losses, which may deter immediate selling. MATIC’s price has steadily climbed to $0.812, and this upward trend, coupled with increased whale activity, hints at a brighter future for the asset.
### Can Polygon (MATIC) Escape Its Bearish Trend?
As of August 6, 2024, Polygon (MATIC) is trading at $0.3989, reflecting a 3.77% daily increase. However, the price remains under the influence of a descending trendline, signaling ongoing bearish sentiment.
MATIC/USD 1-day price chart. Source: TradingView
Fibonacci retracement levels reveal significant resistance points, with price obstacles at $0.4814 (61.8% Fibonacci retracement) and $0.5206 (78.6% Fibonacci retracement). A breakthrough above these levels could propel MATIC toward the psychological mark of $0.70.
The Relative Strength Index (RSI) is currently at 37.28, indicating that MATIC is approaching oversold territory. This positioning suggests a potential reversal could occur if buying pressure intensifies. Conversely, the Moving Average Convergence Divergence (MACD) indicator reflects a bearish crossover, with the MACD line positioned below the signal line.
Support is established at $0.327, a critical level for sustaining upward momentum. A drop below this point could initiate further declines, potentially targeting the $0.20 mark. Resistance remains strong at the trendline and within the $0.48 to $0.52 range.
### Polygon’s Total Value Locked (TVL) Climbs to $709M with 4.1 Billion Transactions
In July 2024, Polygon (MATIC) secured its place as the fourth-largest Ethereum scaling solution by total value locked (TVL) at $709 million, trailing Arbitrum, Base, and Blast, while surpassing Optimism. Its proof-of-stake (PoS) chain processed over 4.1 billion transactions in the second quarter of 2024.
Polygon’s average transaction fee was merely $0.01, marking a 41% reduction 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 the recent price hurdles, 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, amounting to $1.5 billion, outpacing both Arbitrum, Base, and Optimism.
Polygon Total Value Locked. Source: Messari report
Additionally, Polygon’s Polymarket platform experienced a TVL increase of 237% quarter-over-quarter, driven by heightened betting activity in anticipation of the U.S. Presidential elections, underscoring its significance in the decentralized finance landscape.