Connect with us
Active Currencies 16254
Market Cap $3,453,673,508,434.00
Bitcoin Share 54.90%
24h Market Cap Change $-1.98
Polygon

Could MATIC fall to a 2-year low? What price prediction shows

2min Read

MATIC did not present any signals yet that the bulls were ready to reverse the bearish trend.
Posted:
Avatar
Journalist
MATIC demand too weak to halt the dominant downtrend
Avatar
Journalist
Posted:

Share this article

  • The token holders were at a large loss, making recovery extra hard.
  • The network MDIA showed stagnancy has begun to creep in.

Polygon [MATIC] was in a strong downtrend. It began in early April on the daily timeframe with a drop below $0.91. At press time, MATIC was trading below 2023’s yearly low at $0.492.

The bulls were battling the bears with little to show for it. The 2022 yearly low at $0.316 was nearly retested on the 5th of August, with the token falling to $0.334 on the day.

Network activity, accumulation not enough to halt the downtrend

MATIC Active Addresses

Source: IntoTheBlock

The number of new addresses created has dropped in the past two weeks. It held steady around the 600 figure in June and much of July, but faltered in August.

The active addresses were marginally lower than in the second half of July but have increased slightly over the past week.

MATIC Netflows

Source: IntoTheBlock

The negative flows showed MATIC moving out of exchanges in the past month. The USD figure is around $660k. For comparison, the market cap of MATIC and its 24-hour trading volume the previous day were $4.16 billion and $130 million respectively.

Why is it extra hard for MATIC bulls to initiate a recovery?

MATIC 1-day TradingView

Source: MATIC/USDT on TradingView

The persistent downtrend since March meant that holders were at a loss. Each minor rally is an opportunity for holders to get out of their unprofitable venture. The OBV reflected this constant selling pressure.

The Awesome Oscillator has been below the zero line for two months, showing bearish momentum was dominant.

Polygon Santiment

Source: Santiment

The circulation metric dropped in July while the velocity jumped higher. This indicated volatility and speculative trading. Over the past ten days, the metric trends showed holders were more reluctant to sell.

Read Polygon’s [MATIC] Price Prediction 2024-25

This could be a sign of confidence, but all other signals remained bearish.

The mean dollar invested age was trending higher, another sign of long-term holdings. A drop would suggest increased token movement and would aid the chances of a price recovery.

 

Previous:
Next:

Share

Avatar
Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.