MATIC Price Shows Major Weakness on Charts, $0.40 Is Possible
As of press time, Polygon’s MATIC is trading 1.75% up at a price of $0.5583 with a market cap of $5.202 billion. It has given a bullish bounce back above its key support levels of $0.53. However, if the MATIC price drops under this support level, it could experience a nearly 30% freefall to $0.40.
If #Polygon loses the $0.54 support — guarded by 3,770 addresses holding over 70 million $MATIC — it could freefall to $0.40! ⚠️ pic.twitter.com/040dv1Mb9P
— Ali (@ali_charts) August 28, 2023
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Must ReadAlthough the MATIC price has bounced back from the support it is unlikely to get a bullish momentum as it is limited by a descending triangle pattern forming within the falling channel. This indicates that the bearish trend is likely to continue going ahead.
Furthermore, the MATIC price is already much below the 50-day and 200-day moving averages, currently at $0.67 and $0.90, respectively. The Relative Strength Index (RSI) reflects a short-lived recovery from the oversold zone below the 30 threshold, currently standing at 28. This implies that even though significant selling pressure persists, there are ongoing bullish attempts to push the RSI above 30.
The balance between structure and momentum tilts towards sellers on the lower timeframes. To shift this bias, a price movement above $0.571 would be necessary. However, due to the prevailing bearish pressure on higher timeframes, any upward movement is likely to be brief. Both the $0.56 level and the fair value gap (represented by the white area) at $0.6 are likely to offer selling opportunities upon a retest.
MATIC Active Addresses Tank
As of August 20, the Polygon network experienced its lowest number of Active Addresses since May 7, 2023, with a count of 182,370. However, by August 28, the count had rebounded to 238,690 Active Addresses, approaching the levels seen prior to the flash crash on August 17.
The Active Addresses metric compiles the daily count of unique wallet addresses engaged in transactions. Furthermore, on August 28, Sandeep Nailwal, Co-Founder of Polygon, provided an update regarding the planned transition from MATIC to the new POL Token. Notably, Sandeep detailed the seamless process for users to migrate to POL while retaining their staked MATIC rewards.