Polygon (MATIC) has emerged as a focal point of attention due to notable developments on its blockchain. Recent data reveals a surge in daily active addresses and transactions, painting a positive picture for the network. However, this uptick is juxtaposed with a significant decline in total value locked (TVL) over the past week. The interplay of these on-chain metrics raises intriguing questions about the future trajectory of MATIC.
The price of MATIC has been displaying signs of bottoming out, with a sideways movement above the crucial $0.5 support level. A closer look at the daily chart unveils the emergence of a symmetrical triangle pattern—a formation often suggestive of a period of consolidation before a substantial market move.
On October 30, amid the broader uptick in the crypto market, Polygon’s coin price experienced a rebound from the lower trendline of the triangle pattern. This marks the third reversal from the support trendline, emphasizing the pattern’s influence on market participants. While an optimistic scenario envisions a bullish breakout to $0.6, continuing the sideways trend remains possible until the symmetrical triangle pattern is disrupted.
Polygon MATIC’s Prolonged Stagnation
MATIC finds itself trapped within a range that has persisted for six weeks. Despite a recent climb from $0.51 to $0.54 over the past two days, the broader sentiment surrounding MATIC remains bearish. Both indicators and price action uphold a prevailing bearish bias. The range-bound nature of MATIC’s price movement gains credibility as it adheres to high and low extremes, with the mid-range level acting as a consistent support and resistance point.
The Chaikin Money Flow (CMF) paints a picture of significant capital outflow from the market, indicating a neutral momentum and a somewhat stronger presence of sellers. This sets the stage for a potentially protracted breakout, particularly beyond the $0.544 mark. As Polygon remains ensnared within this defined range, market participants closely watch for signals of a decisive move.
Despite hopes for a bullish accumulation phase, MATIC encounters headwinds as the Mean Coin Age metric has steadily declined since September. This metric, signaling the average age of coins in circulation, indicates a consistent selling pressure behind the token. Compounding concerns, the Daily Active Addresses metric has mirrored a downtrend during the same period, reflecting a diminishing level of network activity.
In the intricate dance between on-chain metrics and price action, Polygon (MATIC) stands at a crossroads. The symmetrical triangle pattern hints at potential volatility, while the prolonged range and bearish indicators underscore the challenges ahead.
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