Polygon’s price action over the past week has been characterized by a moderate pullback following what initially appeared to be a decisive breakout above the $0.20 level. This dip, rather than signaling weakness, may in fact represent a healthy retracement as the cryptocurrency prepares for a new upward move. The price structure appears bullish on higher timeframes, especially after POL recently rebounded off the lower boundary of a long-term descending channel. According to a crypto analyst, Polygon could be on the verge of an explosive rally toward the $1 mark. Classic Bullish Divergence Points To Imminent Breakout According to technical analyst MasterAnanda on TradingView, the Polygon ecosystem token (POLUSDT) is currently flashing one of the strongest technical reversal signals in the form of a textbook bullish divergence on the 3-day chart. Price action hit a new low on April 7, 2025, but the Relative Strength Index (RSI) had already bottomed earlier in July 2024 and has since been forming higher lows. Related Reading: Polygon (MATIC) To Come back From The Dead As Ascending Triangle Appears As noted by the analyst, this mismatch between the price and the momentum indicator is a classic signal that the downtrend may be losing steam. The signal is reinforced by the recent increase in volume and the broader bullish recovery observed across the cryptocurrency market. Zooming in on the 3-day chart structure, POLUSDT experienced a notable rebound after reaching its low on April 7. The price climbed steadily to $0.267 by April 22 before encountering resistance. What followed were two successive bearish candlesticks that appeared to trace a measured pullback, likely a retest of the upper boundary of the descending channel. This movement is significant because retests of this nature often precede major breakouts. Keeping this in mind, the analyst predicted a successful bounce from the trendline support, which could start a sustained rally toward $1. Polygon To $1: Window Of Opportunity Narrowing Analyst MasterAnanda noted that the current price action is merely a calm before a massive move. “The market is giving us one last chance to buy all we want before massive growth,” the analyst said, implying that a strong impulsive wave could be next. The RSI is currently in the mid-40s, and if the bullish setup plays out, a swift move to the 70+ zone could occur. Related Reading: Polygon Price Risks Plunge With 90 Million MATIC Tokens Selling At $0.5 In terms of a price target, the analyst predicted a full recovery above $1 with a specific target of $1.15. This would mark a full recovery for POL holders who have been holding throughout the downturn in 2025. This level corresponds to the 1.618 level on the Fib extension projected from the April 7 low. The Fibonacci extension levels plotted on the chart show other smaller price targets on the way to $1.15. Most notable are the $0.461 and $0.534 regions, representing the 0.5 and 0.618 extension levels, respectively, which could serve as interim consolidation zones. At the time of writing, Polygon is trading at $0.2420. Featured image from Adobe Stock, chart from Tradingview.com
Polygon (MATIC) recently broke below the crucial support level at $0.5 and is at risk of further price declines. This price drop is thanks to several traders who offloaded their tokens as soon as Polygon reached this support level amid the downtrend in the broader crypto market. Polygon Faces Significant Selling Pressure The Exchange-Onchain Market Depth indicator on the market intelligence platform IntoTheBlock shows that Polygon is currently facing significant selling pressure. Over 90 million tokens were sold after the coin hit $0.5. This indicator tracks the order books of the top 20 exchanges and shows the average price at which traders are looking to buy and sell the token. Related Reading: Market Experts Update Ethereum Predictions: Is A 1,400% Rally To $50,000 Possible? Polygon bulls could not defend the crucial support level of $0.5 as further data from IntoTheBlock shows that just over 55 million tokens were bought at an average bid price of $0.49. Meanwhile, Polygon is at risk of further price declines, with data from IntoTheBlock showing that the sell orders continue to outweigh the buy orders. The silver lining amid this wave of sell-offs is that Polygon whales look to have maintained their confidence in the MATIC token and have taken advantage of this price dip to accumulate more tokens. Data from IntoTheBlock shows that large holders’ net flows have increased by over 1,700% in the last seven days, indicating accumulation among these investors. Only 3% of Polygon holders are currently in the money, which could lead to further price drops for the crypto token. If the crypto token doesn’t rebound soon enough, the 96% of investors currently at a loss could cut their losses at some point, thereby triggering another wave of sell-offs for MATIC. Thanks to its bearish price action, Polygon recently dropped out of the top 20 crypto rankings by market cap. Data from CoinMarketCap shows that it is currently the twenty-first largest crypto token by market cap, behind Litecoin. Market Conditions Not Making It Easier For MATIC The current conditions in the broader crypto market have also contributed to Polygon’s recent decline. Bitcoin recently dropped to as low as $63,500 from $69,000, dragging altcoins down in the process. Tokens like MATIC have suffered more significant price drops because of their strong positive price correlation with Bitcoin. Related Reading: Why Did This Crypto Whale Spend $400 Million Buying Bitcoin Yesterday? The flagship crypto has experienced this price decline thanks to the rising tensions in the Middle East, with Iran and Israel at the forefront. However, the market is expected to pick up again soon enough, meaning that tokens like MATIC could enjoy a massive rebound sooner rather than later. The first goal will be for the crypto token to reclaim the crucial support level at $0.5. At the time of writing, Polygon is trading at around $0.48, down almost 2% in the last 24 hours, according to data from CoinMarketCap. Featured image created with Dall.E, chart from Tradingview.com
Layer 2 scaling solution Polygon has maintained strong network activity even as the broader cryptocurrency market and its native token, MATIC, experienced a downturn in the second quarter of 2024, according to a new report from market intelligence platform Messari. Polygon Weathers Crypto Market Downturn While MATIC saw a 44.3% drop in its circulating market cap to $5.5 billion over the quarter, placing it as the 20th largest crypto asset (currently at the 26th position), the protocol’s on-chain metrics remained strong. This is in contrast to larger cryptocurrencies such as Bitcoin and Ethereum, which saw their market capitalization decline by 12% and 6%, respectively, over the same period. Related Reading: Why Is ETH Price Struggling Despite The Spot Ethereum ETFs Launch? The key driver behind Polygon’s stability in network performance during the second quarter of the year, according to Messari, was the implementation of Ethereum Improvement Proposal (EIP) 4844 on the Polygon mainnet in Q1 2024. This upgrade, which introduced “blobs” to the network, significantly reduced the average transaction fee on Polygon from $0.017 to just $0.01, resulting in a decrease of 41.1%. As a result, Polygon’s revenue derived from network transaction fees fell 40.6% to $4 million in Q2 2024. However, this drop was not due to a decrease in user activity, but rather the lower fees enabled by EIP-4844. In fact, Polygon’s user metrics continued to soar, with the protocol seeing strong growth across several key indicators. On-Chain Activity And Ecosystem Growth According to the report, the average number of daily active addresses climbed to 1.2 million, a 47.6% increase quarter-over-quarter (QoQ). The average number of daily returning addresses rose even more, up 50.5% to 1 million. Moreover, new addresses being added to the network grew by 31.7% to 167,800 per day on average. The report also notes that Polygon’s transaction volume also held steady, averaging 4.1 million daily transactions, just below its all-time high and representing a 3.9% increase from the prior quarter. In comparison, fellow Layer 2 networks Arbitrum (ARB) and Base saw average daily active addresses of 545,000 and 528,000 respectively. Related Reading: Crypto AI Token RENDER Soars 15.6% After Rebrand, Can It Hit $10? While Polygon’s decentralized finance (DeFi) total value locked (TVL) dropped 22.9% to $1 billion, this was largely attributable to the decline in MATIC’s price rather than a net outflow of capital. Messari reported that TVL denominated in MATIC actually increased by 38.1% to 1.8 billion tokens. However, DeFi protocols on Polygon saw mixed results, with Aave, Uniswap, and SushiSwap all experiencing declines in TVL ranging from 13% to 25%. Quickswap saw the largest drop at 35%. Lastly, Polygon’s non-fungible token (NFT) market also remained stable, with average daily NFT volume dipping slightly by 5.7% to $1.8 million. However, the number of daily NFT sales actually increased by 1.8% to 52,000, underscoring ongoing collector interest. At the time of writing, MATIC has experienced a mere 5% increase to a trading price of $0.512, after hitting a 2-year low of $0.428 on July 5th. Coupled with this worrying price action, the token has seen a 30% decrease in trading volume over the past few days, amounting to $197 million, according to CoinGecko data. All of this has resulted in an 82% difference to MATIC’s all-time high of $2.91, which was set during the 2021 bull run. Featured image from Shutterstock, chart from TradingView.com
MATIC, the native token of the Polygon network, has had perhaps one of the most disappointing runs of the top cryptocurrencies in the last year. While most of the market rallied to new yearly highs, the MATIC price continued to struggle, leaving investors in massive losses. However, there may be light at the end of […]