- Polygon failed to ditch the bear trap, keeping L2’s native MATIC around $0.60.
- 60% daily Derivatives upswing hints at renewed interest for leveraged trades.
- Unprecedented since March 31, MATIC’s $1 milestone tacks on another hurdle.
The popular Layer-2 altcoin Polygon (MATIC) has been entangled in a bearish loop, plummeting to three-month lows last Friday, July 14, 2024. Bouncing back from $0.577, MATIC struggled to hold strength at $0.60 on Monday afternoon. The support bubble at the price range between $0.60 and $0.63 consists of a 77.64M MATIC split between 9.36K addresses.
However, this support cluster has yet to make any difference in Polygon’s journey to restore its $1 long-term price goal. Finishing March hovering around $1, MATIC’s price was quickly sent back to $0.75 resistance levels in the first two weeks of April. Since then, the bearish momentum for MATIC has carried on, and the $0.75 resistance levels formed a double top on May 21 and May 24.
Despite the 15% monthly price drop, MATIC sports a hefty total value locked (TVL), currently at $11,898,581,834. The network holds a huge stablecoin market cap of $1.736B, with Tether USD (USDT) prevailing as the leading on-chain stablecoin. To compare, MATIC’s market cap is at $5.61B, slimming by over $4B from the $9.95B high point in the last bull cycle in March 2024.
MATIC Rises 60% in Derivatives Volume
MATIC established a strong support level around $0.60, but a northbound trajectory still lacks substance even as Derivatives traders piqued interest in the token again. Spiking by 60% in a day, MATIC’s trading volume on Derivatives now comprises $282.40 million, according to CoinGlass stats.
Binance’s customers are the most bullish on Polygon, showcasing a 4.211 ratio between long versus short account positions against USDT. With an overall long versus short position ratio standing at 0.9639, it’s clear that crypto Derivatives traders are in two minds about MATIC’s price trajectory in the near future.
Large investor cash inflows are not coming back just yet, as the Chaikin Money Flow (CMF) metric dwells slightly below zero. Meanwhile, MATIC’s Relative Strength Index (RSI) on the one-hour technical trading charts showcases an oversold position, ranging from 30 to 39. Accompanied by expanding Bollinger Bands, this signals MATIC’s incoming price volatility in the coming days.
On the Flipside
- According to on-chain data from IntoTheBlock, less than 8% of current Polygon (MATIC) cryptocurrency holders are making a profit at this price.
- In contrast to Derivatives markets, Spot markets witnessed a significant plunge of 39% to a total of $13,426,715 in 24-hour combined MATIC orders.
Why This Matters
Polygon’s blockchain is among the most widely accepted crypto brands, having inked deals with Starbucks, Coca-Cola, Adobe, Disney, and others. Meanwhile, developers choose Polygon L2 for its vast scalability options and speedy processing time.
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