MATIC (Polygon) Price Analysis: MATIC Struggles to Break the Downtrend, Can the Bulls Step In?
- PHPzOriginal
- 2024-07-01 19:02:36341browse
The ecosystem has seen a significant amount of activity on its network. One of the reasons for Polygon's success is the popularity of its decentralized applications.
Polygon [MATIC] network activity remained high with popular decentralized applications (dApps) driving ecosystem growth.
Polymarkets, an event-based betting dApp, generated over $100 million in volume, contributing to increased activity on Polygon.
More users attracted by successful dApps like Polymarkets could lead to overall growth in the Polygon network.
Increased adoption and network activity may positively impact the price of MATIC, Polygon’s native token.
Demand for MATIC could rise as more users interact with dApps, requiring the token for gas fees and other functions.
At the time of writing, MATIC’s price was $0.5524, down 1.08% in the past 24 hours.
After a strong rally since June 7, MATIC’s price encountered resistance at the $0.5961 level.
Since then, the lower highs and lows indicated a bearish trend in the lower time frame.
The RSI also declined during this period, indicating a decrease in bullish momentum around MATIC.
Moreover, MATIC's total trading volume decreased by 30% in the past month.
However, on the positive side, MATIC’s Chaikin Money Flow (CMF) showed a strong increase.
This indicated that the money flowing into MATIC has increased significantly in the past few days.
If the money flow continues to rise, the chances of a reversal might be increasing.
If MATIC can test the $0.5961 level and show weakness, the price might aim to reclaim the $0.7413 level in the future.
Is your wallet green? Check out the MATIC profit calculator
In terms of on-chain metrics, AMBCrypto’s analysis of Santiment data showed that network growth dropped significantly in the past few days.
This indicated that new addresses joining the network have lost interest, which could impact the chances of a MATIC price reversal if it continues.
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