Polygon’s (MATIC) recent on-chain activity has shown a significant uptick, indicating potential changes in the market’s sentiment towards the cryptocurrency.
According to on-chain analytics firm Santiment, major dormant wallets have suddenly become active, suggesting that a possible price reversal may be on the horizon.
This increase in activity follows a prolonged period of decline. Beginning in March, Polygon, along with many other cryptocurrencies, saw a downward trend. However, recent data indicates that this trend might be shifting.
Surge in On-Chain Activity Signals Possible Reversal
Santiment’s analysis reveals that 69 billion MATIC were consumed in a dormant coin movement spike, a considerable event in the network’s recent history. Additionally, the data shows that 3,369 MATIC addresses interacted on the network, marking the second-highest day of activity for the year.
Polygon has been among the many networks declining since crypto's retrace began back in March. However, a notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon. Active addresses and dormant coin spikes are common signals preceding this. pic.twitter.com/RY5NXe10ZW
— Santiment (@santimentfeed) August 28, 2024
These spikes in on-chain activity are often precursors to market reversals, suggesting that MATIC could be poised for a potential comeback.
The surge in activity comes at a time when the broader cryptocurrency market has been under pressure. Since March, MATIC has been part of the wider market retrace, with its value declining steadily. However, the recent on-chain data provides a glimmer of hope that this narrative might be changing.
Current Market Status: MATIC Shows Bearish Signs
As of today, Polygon’s live price stands at $0.408305, reflecting a 5.82% drop over the last 24 hours. The cryptocurrency has a 24-hour trading volume of $266,352,470 and currently holds the #21 rank on CoinMarketCap, with a market cap of $4,078,681,817. The circulating supply of MATIC is reported to be 9,989,303,278 coins.
A price chart analysis of Polygon over the 24-hour period on August 30th reveals a clear downward trend. The price started at approximately $0.4323 USD and declined throughout the day, with the most pronounced drop occurring in the afternoon.
Source: CoinMarketCap
The price came down to its least at a level under $0.41 USD, and then recovered slightly as people went home for the day at a price level of $0.41 USD. This price pattern is reflective of the negative bias that permeates the market whereby more orders to sell dominate over those to buy.
Further, the technical indicators enforce the bear case. The position histogram for the Moving Average Convergence Divergence (MACD) indicator is in negative territory, which confirms that the current trend is still down. On the other hand, the joining of the MACD lines gives hope that there will be an upward crossover in the near future if the price maintains above strong support levels, which signals a reversal of the trend.
Source: TradingView
Additionally, the Relative Strength Index (RSI) is currently at 39.63, placing it near the oversold territory. While this level does not yet indicate extreme overselling, it suggests that the asset is nearing a point where a reversal could occur if market conditions improve.
The post Polygon (MATIC) Price Prediction August 30: On-Chain Activity Spikes, But Will the Downtrend Persist? appeared first on Coinfomania.