Polygon's MATIC: Growth Amidst Bearish Market Trends
In the second quarter of 2024, Polygon's MATIC holders on the Polygon chain increased by an impressive 76% year-on-year, resulting in the addition of 28 million new independent addresses.
According to a report by Coin98 Analytics, despite some fluctuation in financial data month-on-month, the overall network indicators showed significant growth compared to the same period last year.
Source: Coin98Analytics
The transaction volume on Polygon surpassed 370 million, and the ecosystem indicators indicated a substantial increase, with Polygon's TVL reaching approximately US$820 million and over 41 million new NFTs in circulation. Additionally, the number of independent NFT buyers increased by 40% year-on-year, reflecting the growing interest in Polygon's ecosystem.
MATIC Facing Weakness On Technical Chart; What Next?
On the daily technical chart polygon (MATIC) is in the bearish territory for a prolonged time. Its price was halted at the level of $1.2888 and from then it has been in a downtrend.
MATIC price is trading below the key exponential moving averages of 50-Day and 200-Day showcasing bearish momentum.
RSI and MACD are also giving bearish overlooks as the RSI curve and MACD is trading in the bearish territory.
MATIC is taking support on the $0.4356 level. If it breaks the current support then it might see more downside levels shortly.
At the time of writing, Polygon's price was trading at $0.5036 with a minor intraday gain of 0.32%. Currently, its market cap stands at $4,938,270,886 and its 24-hour trading volume is $284,316,898.
Polygon Weak Performance
Polygon (MATIC) has shown disappointing performance this year, with a negative return of 48.63% year-to-date. Over the last 6 months, it has decreased by approximately 44.54%, and in the last month, it saw a negative return of 23.24%.
Moreover, according to the technical summary of the trading view out of 26 indicators, 14 are on the sell side, 10 are on the neutral side and 2 are on the buy side demonstrating bearishness.
Conclusion
While Polygon's MATIC has experienced a significant increase in holders and transaction volume, indicating a growing interest in its ecosystem, the cryptocurrency is currently facing bearish trends on the technical chart. Despite the network's expansion and the addition of new NFTs, MATIC's price performance has been underwhelming, with a notable year-to-date decline. The technical indicators suggest continued bearish momentum, which may lead to further price decreases if the current support level is broken.
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