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Polygon In Peril: Will MATIC Bounce Back Or Stay Stuck In The Sub-$1 Doldrums?

Polygon (MATIC), the high-speed scaling solution for Ethereum, has been on a rollercoaster ride this month. After a brutal price correction that saw MATIC tumble over 20%, a recent 24-hour surge has injected a dose of optimism into the market. But is this a sign of a full recovery, or a temporary reprieve before further decline?

Polygon’s Price Plunge: A Reality Check

CoinMarketCap data paints a sobering picture. MATIC has been steadily dropping down the ranks of the top 20 cryptocurrencies, currently sitting at number 18. This decline coincides with a significant price drop, with MATIC losing over a quarter of its value in the last 30 days.

Analysts like World of Charts point to the descending channel pattern on MATIC’s daily chart, a classic indicator of a bearish trend. For a true price recovery, MATIC needs to overcome a crucial hurdle: the $0.77 resistance level. A breakout above this point could trigger a significant bull run to the $1 dollar level, but the climb won’t be easy.

Pulse On Investor Sentiment

The past 24 hours have offered a glimmer of hope for Polygon bulls. The token price surged by 5%, briefly eclipsing the $0.74 mark. This uptick coincides with an improvement in the MVRV ratio, which suggests a rise in the number of profitable MATIC investors.

Additionally, the bullish crossover on the MACD indicator hints at a potential increase in buying pressure. However, beneath the surface, some concerning trends remain.

Despite the recent price uptick, data suggests substantial selling pressure on Polygon. The exchange inflow has increased significantly, indicating investors moving tokens onto exchanges, often a precursor to selling. This trend is further corroborated by a rise in MATIC’s supply on exchanges, while the supply held outside of exchanges has dwindled.

Technical Indicators Paint A Mixed Picture

While the MACD offers a glimmer of hope, other technical indicators remain bearish. The Bollinger Bands suggest reduced volatility, which can be a sign of consolidation before a breakout or a further price drop. Both the Money Flow Index (MFI) and Chaikin Money Flow (CMF) have registered downticks, potentially signaling the end of the short-lived bull rally.

Polygon’s Path Forward

While the technical outlook for Polygon remains uncertain, a complete reversal isn’t out of the question. Continued positive developments within the Polygon ecosystem, coupled with broader market recovery, could propel MATIC upwards.

However, overcoming the selling pressure and technical resistance levels will be crucial for a sustained bull run. Investors should exercise caution and closely monitor market developments before making any investment decisions.

Featured image from Pexels, chart from TradingView

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Whale Alert: MATIC Poised For Epic Surge – Time To Dive In?

In the ever-volatile landscape of the cryptocurrency market, recent days have seen a surge in turbulence, with Bitcoin and leading altcoins struggling to maintain stability. Among them, MATIC, the native token of Polygon, hasn’t been immune to the downward pressure, experiencing a drop of nearly 2% in the past 24 hours alone.

As of the latest data, MATIC is trading at $0.69, marking a 21% decrease compared to the previous week.

MATIC: Whales Seize The Opportunity

Despite the market downturn, some seasoned investors are viewing this as an opportunity to stockpile MATIC at lower prices. Large holders, colloquially known as whales, have been particularly active during this period of volatility.

Notably, there has been significant accumulation of MATIC by whales, with one notable investor scooping up nearly 2 million tokens. This trend of accumulation is further evidenced by an uptick in the number of wallets holding substantial amounts of the altcoin, ranging from 1,000 to 10 million coins.

Additionally, large transactions worth more than $100,000 have increased significantly, indicating a concerted effort by whales to buy the dip.

Bullish Sentiment Prevails Among Whales

Whales remain steadfast in their bullish outlook for MATIC. Data shows that more than half of all whale positions for the crypto on Binance are long. This suggests that large investors are confident in the token’s potential for a short-term rebound. Their optimism is rooted in their belief in the underlying fundamentals of MATIC and its role within the Polygon ecosystem.

However, amidst the backdrop of price volatility, there has been a surge in negative commentary surrounding the coin. The Weighted Sentiment indicator reflects an increase in bearish sentiment, potentially influencing retail investors’ participation.

Negative discourse, particularly on social media platforms, can have a significant impact on market sentiment and investor behavior. Retail investors, often swayed by discussions and sentiment online, may be cautious in their approach to MATIC amidst the prevailing negativity.

Furthermore, Santiment’s data analysis corroborates the uptick in whale activity and accumulation of MATIC during the market downturn. Santiment’s insights provide additional context to the trends observed in whale behavior, offering valuable information for market participants.

While the cryptocurrency market grapples with uncertainty and price fluctuations, MATIC stands out as a focal point of activity. Whales are leveraging the market downturn to accumulate MATIC, expressing confidence in its future prospects.

Despite challenges posed by negative commentary, the bullish sentiment among whales underscores the resilience of MATIC within the broader crypto landscape.

Featured image from Pexels, chart from TradingView

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MATIC Price Prediction: Can Polygon Rip Higher To $1.15

MATIC price is up over 5% and it tested the $0.950 resistance. Polygon bulls are in full control, and they might aim for more upsides above $1.00.

  • MATIC price started a fresh increase above the $0.920 resistance against the US dollar.
  • The price is trading above $0.925 and the 100 simple moving average (4 hours).
  • There was a break above a key bearish trend line with resistance at $0.9150 on the 4-hour chart of the MATIC/USD pair (data source from Kraken).
  • The pair could continue to move up if it clears the $0.9720 resistance.

Polygon Price Starts Fresh Increase

After forming a base above the $0.8620 level, Polygon’s price started a fresh increase. MATIC cleared many hurdles near $0.880 and $0.8950 to move into a positive zone, like Bitcoin and Ethereum.

There was also a move above the $0.90 resistance and the 100 simple moving average (4 hours). The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $1.0854 swing high to the $0.8612 low.

Besides, there was a break above a key bearish trend line with resistance at $0.9150 on the 4-hour chart of the MATIC/USD pair. MATIC is trading above $0.9250 and the 100 simple moving average (4 hours).

Immediate resistance is near the $0.960 zone. The first major resistance is near the $0.9720 level or the 50% Fib retracement level of the downward move from the $1.0854 swing high to the $0.8612 low. If there is an upside break above the $0.9720 resistance level, the price could continue to rise.

MATIC Price Prediction

Source: MATICUSD on TradingView.com

The next major resistance is near $1.00. A clear move above the $1.00 resistance could start a steady increase. In the stated case, the price could even attempt a move toward the $1.100 level or $1.150.

Are Dips Limited in MATIC?

If MATIC’s price fails to rise above the $0.9720 resistance level, it could start a downside correction. Immediate support on the downside is near the $0.915 level and the same trend line.

The main support is near the $0.880 level. A downside break below the $0.880 level could open the doors for a fresh decline toward $0.8620. The next major support is near the $0.8250 level.

Technical Indicators

4 hours MACD – The MACD for MATIC/USD is gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for MATIC/USD is now above the 50 level.

Major Support Levels – $0.9150 and $0.880.

Major Resistance Levels – $0.9720, $1.00, and $1.15.

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Polygon (MATIC) In Buy Zone That Earlier Led To 112% & 87% Surges

On-chain data shows Polygon (MATIC) is currently inside the same buy zone that earlier led to rallies of around 112% and 87% for the asset.

Polygon 30-Day MVRV Ratio Is Significantly Negative Currently

As pointed out by analyst Ali in a post on X, MATIC is showing a historically bullish pattern in its 30-day MVRV ratio. The “Market Value to Realized Value (MVRV) ratio” here refers to an on-chain indicator that keeps track of the ratio between the Polygon market cap and realized cap.

The realized cap is a capitalization model that calculates the total valuation of the cryptocurrency by assuming that the “real” value of any coin in circulation isn’t the current MATIC spot price, but rather the price at which it was last transferred on the blockchain.

Considering that the last movement of any coin was the last time it changed hands, the price at its time would serve as its current cost basis. As such, the realized cap essentially sums up the cost basis of every coin in circulation.

Put another way, the realized cap is a measure of the total amount of capital the investors have put into the asset. Since the MVRV ratio compares the value the holders are carrying right now (that is, the market cap) against this initial investment, its value can tell us about the profit-loss status of the market as a whole.

Now, here is a chart that shows the trend in the 30-day version of the Polygon MVRV ratio, which tells us about the profit-loss balance specifically for the investors who bought within the past month:

Polygon MVRV Ratio

In the graph, the 30-day MVRV ratio has been displayed in terms of a percentage, with the 0% mark aligning with the scenario where the market cap and realized cap are equal.

It’s visible that the indicator has registered some steep drawdown for Polygon recently and has dipped deep inside the negative territory. This would imply that the investors who bought within the last 30 days have entered into notable losses.

The latest levels of the metric have been low enough to qualify for a zone that has provided profitable buying opportunities in the past. “Historically, the last two entries into this zone saw MATIC surge by 112% and 87%,” notes the analyst.

A possible explanation behind this pattern could be the fact that as these 30-day investors enter into losses, the selling pressure in the market goes down as there aren’t many profit-takers left. This naturally facilitates for bottoms to take place.

It now remains to be seen whether this past pattern would repeat for Polygon this time as well, and if it does, whether any resulting surge would be of a similar scale or not.

MATIC Price

Polygon has registered a 3% surge in the past day, with its price now floating above $0.93. Given the timing, it’s possible the MVRV ratio buy signal may already be in effect.

Polygon Price Chart

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Polygon Observes Buy Signal: Analyst Suggests MATIC Rebound To This Level

An analyst has explained how a buy signal forming in the price of Polygon (MATIC) could lead to the asset rebounding towards these price targets.

Polygon Is Showing A TD Sequential Buy Signal Right Now

In a new post on X, analyst Ali has discussed about the a Tom Demark (TD) Sequential signal forming in the MATIC price chart. The TD Sequential here refers to an indicator in technical analysis that’s generally used for pinpointing probable locations of reversal in any given asset’s value.

This indicator has two phases to it, the first of which is known as the “setup.” In this phase, candles of the same polarity are counted up to nine, at the end of which the price may be assumed to have encountered a point of reversal.

Naturally, if the candles leading up to the completion of the setup had been red, the reversal would be towards the upside, while green candles would suggest a potential top for the asset.

Once the setup is done with, the second phase called the “countdown” begins. This phase works similarly to the setup, except for the fact that it lasts for thirteen candles instead of nine. After these thirteen candles of the same polarity are also in, the price may be considered to have attained another likely point of reversal.

Polygon has recently completed a TD Sequential phase of the former type. Below is the chart shared by Ali that shows the formation of this TD Sequential signal for the MATIC daily price.

Polygon (MATIC) Price Chart

As displayed in the above graph, the Polygon daily price has finished a TD Sequential setup with a downtrend recently. This would suggest that the asset may be at a potential bottom at the moment.

“If MATIC stays strong above $0.87, we could see a rebound to $0.95, or better yet, $1!” says the analyst. A potential rally to the former of these targets would suggest an increase of more than 8% from the current price, while a run to the latter level would mean growth of almost 14%.

It now remains to be seen how the Polygon price will develop from here and if the TD Sequential buy signal will end up holding or not.

MATIC Price

The past few weeks have been a bad time for Polygon investors as the cryptocurrency’s price has slid down all the way from around the $1.3 level to now the $0.87 mark, corresponding to a drawdown of over 33%.

The chart below shows what the trend in MATIC’s value has looked like over the past month.

Polygon Price Chart

Amid this downward trajectory, the TD Sequential buy signal may perhaps end up being at least a glimmer of hope for the Polygon holders.

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Reality Check: MATIC Investors Count Losses – More Headaches Ahead?

Polygon’s native token, MATIC, finds itself at a crossroads as it grapples with price volatility amidst an impending network upgrade and challenges surrounding Total Value Locked (TVL). In the past week, MATIC has witnessed a notable downturn in price, slipping by 4.44% according to data from CoinMarketCap. Despite earlier optimism that drove MATIC close to the $2 mark, the token has encountered resistance at the $1 level, with bullish momentum struggling to gain traction amidst prevailing market conditions.

MATIC Investors Feel The Pinch

Data analysis from IntoTheBlock paints a mixed picture for MATIC holders, revealing that 51% are currently facing losses, while 43% are enjoying profits, leaving a mere 5% at the break-even point. This volatility serves as a stark reminder of the inherent risks associated with investments in the cryptocurrency market.

However, amidst the market turbulence, a ray of hope emerges for MATIC holders in the form of Polygon’s recently announced “Napoli upgrade.” This upgrade, designed to bolster the network’s consensus mechanisms, is set to introduce enhancements in parallel execution and incorporate novel operational codes for the Ethereum Virtual Machine (EVM). Analysts speculate that the Napoli upgrade could inject renewed buying pressure into the market, with projections hinting at a potential price rise towards $1.30 if bullish sentiment prevails.

Despite the anticipation surrounding the Napoli upgrade, Polygon faces challenges on other fronts, notably concerning its Total Value Locked (TVL). In a remarkable turnaround from its peak in 2021, TVL has plummeted to $1 billion, according to data from DeFiLlama. This decline reflects a waning participation in liquidity provision, raising concerns about the protocol’s health and resilience.

The Road Ahead For Polygon

Polygon’s leadership remains optimistic about the project’s future, emphasizing its resilience amidst market fluctuations. They believe that the Napoli upgrade, coupled with strategic initiatives aimed at addressing challenges such as TVL, will fortify Polygon’s position for sustained success in the dynamic cryptocurrency landscape.

As investors and industry observers closely monitor developments within the Polygon ecosystem, navigating the delicate balance between the potential catalyst of the Napoli upgrade and the headwinds posed by declining TVL, the road ahead for MATIC remains uncertain. The cryptocurrency’s ability to weather market volatility and regain momentum in the face of recent setbacks will be pivotal in shaping its trajectory in the coming weeks and months.

MATIC’s recent price gyrations, punctuated by the announcement of the Napoli upgrade and challenges surrounding TVL, underscore the complexities inherent in navigating the cryptocurrency market. As Polygon continues to chart its course, adaptation and innovation will be key drivers in determining its long-term viability amidst an ever-evolving landscape.

Featured image from Andrea Piacquadio/Pexels, chart from TradingView

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Incoming MATIC Surge: Analyst Predicts $15 Price Target

Digital asset analyst with X handle Crypto Patel has recently shared a bullish prediction on MATIC price movement in the coming weeks. This forecast comes amidst MATIC’s poor performance in the last seven days, during which it lost 6.68% of its market value, based on data from CoinMarketCap. 

The Polygon native token had been one of the best-performing assets in 2024 rising by over 76.38% between January to March. However, the altcoin has now recorded a 22.83% decline over the last two weeks, drawing much concern over its future price movement. 

$1.20 Price Level Critical For MATIC Price Surge, Analyst Says

In a post on X on March 23, Crypto Patel presented a bullish case for MATIC despite the token’s current downtrend, naming the forecast the “MATIC BULL RUN ROADMAP.”

Firstly, the analyst stated that a MATIC bullish pennant was being formed. For context, the bullish pennant represents a price pattern that typically follows a string of upward movement in price (the flagpole) followed by a period of consolidation (pennant).

A bullish pennant is characterized by converging trendlines, which indicates the continuation of the previous uptrend once the price breaks out of consolidation. Importantly, Crypto Patel emphasized that MATIC’s bullish pennant was being formed on a higher time frame (HTF), such as the weekly chart. 

Following historical trends, the complete formation of the bullish pennant could result in Polygon native asset experiencing a 100x price increase in the highly anticipated crypto bull run, as observed in 2021.

However, with a focus on short-term targets, Crypto Patel has stated that MATIC reaching the $1.20 price zone on the HTF could trigger a surge to a range of $10-$15, representing a potential 1500% gain on the asset’s current price.  Albeit, in the advent of an unexpected crash, the crypto analyst expects MATIC could be significantly affected but should find support around the $0.60-$0.70 price zone. 

MATIC Price Overview

At the time of writing, MATIC trades around $0.9817 with a 1.30% gain in the last 24 hours. Meanwhile, the token’s daily trading volume has declined by 31.82% and is valued at $291.65 million. With a market cap value of $9.7 billion, MATIC is ranked the 16th largest cryptocurrency and one of the world’s most prominent digital assets.

MATICMATIC trading at $0.9771 on the daily chart | Source: MATICUSDT chart on Tradingview.com

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Polygon (MATIC) Whale Makes Large Deposit To Binance, Bearish Sign?

On-chain data shows a Polygon whale has made a sizeable deposit to the cryptocurrency exchange Binance, a sign that may be bearish for MATIC.

Polygon Whale Has Deposited $13.7M Worth Of MATIC To Binance

According to data from the cryptocurrency transaction tracker service Whale Alert, a massive MATIC transaction has been spotted on the blockchain during the past day.

The transfer in question involved the movement of 13.1 million MATIC, worth almost $13.7 million in US Dollars, when the transaction went through on the network. Given the large scale of the transfer, it’s likely that a whale entity was responsible for it.

Whales can be influential beings on the blockchain due to their sheer scale of holdings. As such, their movements can be worth watching, as they may lead to fluctuations in the market or, at the very least, inform us about the sentiment among these humongous entities.

As for what any such transaction may imply for the market, it comes down to the intent behind it. Below are additional details regarding the latest Polygon whale transfer, which may reveal its context.

Polygon Whale Transaction

As is visible above, the sending address involved in this Polygon transaction was an unknown wallet. This means the address was unaffiliated with any known centralized platform like an exchange and, thus, was likely to be an investor’s wallet.

On the other hand, the receiving address was connected to a centralized entity: the cryptocurrency exchange Binance. Moves like this that go from unknown wallets to exchanges are known as exchange inflows.

The whale making an inflow to Binance suggests they wanted to use one of the platform’s services, which can include selling. As such, the transaction may prove to be bearish for Polygon’s price if the whale ends up selling their stack.

MATIC Is Behind Market With Only 1% Surge Today

Whereas the rest of the cryptocurrency market has been racing up in the past day, led by Bitcoin’s strong surge towards $57,000, Polygon has lagged as the asset has only been able to see an uplift of 1% in the last 24 hours.

The below chart shows how the coin has performed in the last few days.

Polygon Price Chart

However, Polygon’s returns of around 7% over the past week aren’t too far off from Bitcoin’s 9% profits in the same period. Still, the relatively poor performance in the past day may be why the whale has potentially decided to sell their large stack.

Regarding market cap, MATIC is currently the 14th largest coin in the sector, with its closest competitor, Polkadot (DOT), speeding away with its gains of more than 6%.

Polygon Market Cap

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The Polygon Vesting Contract Is Officially Empty, Will This Send MATIC Price To $3?

Like many other crypto projects, the native token of the Polygon network, MATIC, was launched with some portion of the supply vested for the team over a period of time. In the case of Polygon, the vesting was for five years, and since 2019, there have been periodic token unlocks. However, the unlocks, which have often been a deterrent for investors, are now over, as the last batch was just released to the team.

Polygon Last Unlock Goes To Team

On Wednesday, February 21, the Polygon Foundation received the very last portion of their vested tokens from the vesting contract. In total, 273,304,816 million MATIC tokens valued at $260 million were released to the Foundation’s wallet.

This unlock marks the very last unlock that the Foundation will receive, meaning that almost all of the available supply of MATIC is now in circulation. The latest unclog brings the circulating supply of the cryptocurrency to 9,618,318,574 out of its 10,000,000,000 maximum supply. As a result of this, the market cap of Polygon is sitting just above $9.14 billion with a fully diluted valuation (FDV) of approximately $5 billion.

The entirety of the MATIC supply has been unlocked, which means that there will be no more tokens being brought into circulation. This is a huge milestone for the project, whose investors have waited years for the vested tokens to finally run out.

MATIC price chart from Tradingview.com (Polygon)

How Will This Affect The MATIC Price?

The fact that the entirety of the MATIC supply is now in circulation is bullish for the digital asset, especially in the long term. Inflation is a factor that tends to drive investors away and keep them from holding their coins due to the fear of more tokens coming into circulation, causing supply to exceed demand.

Now that the entirety of the supply is now in circulation, it gives the MATIC price a chance to enter into price discovery. However, there is still some concern about when the Polygon Foundation might start selling their coins as the entirety of the unlocked tokens still sit in the Foundation’s wallet.

If they do decide to sell, though, it is likely that the foundation would do so through OTC (over-the-counter) deals to minimize the impact of such a sale on the token price. As a result, the MATIC price might not suffer much.

At the time of writing, the MATIC token is trading at $0.95 with a 24-hour increase of 1.11%. Although its performance has been far from encouraging, the token is sitting only 67% below its 2021 all-time high of $2.92.