- MATIC struggles to maintain $0.50 support, with the potential to drop to $0.45.
- Binance’s decision negatively impacted MATIC’s value, leading to substantial token transfers.
- Sixty-six thousand holders with 1.7 billion MATIC at $0.70 could influence price direction.
Polygon (MATIC) has been consistently maintaining its position above the vital $0.50 support threshold, thanks to the efforts of optimistic investors. However, there are apprehensions among experts that a break below this level could see MATIC’s value decline to $0.45. Even with its steadfastness, MATIC faces challenges in crossing the $0.55 milestone, which raises alarms for its investors.
Reportedly, Binance’s decision to remove Polygon-supported assets from its NFT Marketplace on September 26 significantly impacted MATIC’s value. Following this unfavorable announcement on September 8, MATIC holders quickly transferred 3.5 million tokens to trading platforms within the next 72 hours. This movement increased the total MATIC tokens in exchange wallets to 983.7 million. As a result, MATIC’s price declined to $0.48 by September 11.
Despite challenges, the Polygon network remains at the forefront of innovation, with grand aspirations for Ethereum scaling through Polygon 2.0. Their goal is to be the industry’s speediest blockchain. Polygon Labs has unveiled the inception of Polygon 2.0, anchored by three pivotal Polygon Improvement Proposals (PIPs).
MATIC/USDT Technical Analysis
Currently, MATIC stands at $0.5067, reflecting a 7.73% drop within the day. Interestingly, its market capitalization has taken a 2.69% hit, settling at $4.7 billion. However, on a brighter note, its 24-hour trading volume has grown 6.24%, now at $210 million.
MATIC/USD 24-hour price chart (source: CoinStats)
The Chaikin Money Flow (CMF) indicator currently reads at -0.08, hinting at a minor bearish sentiment with funds moving out. This could be an inclination towards sell-side activities, indicating diminished buyer interest.
Meanwhile, the 20-day moving average, $0.5072, is marginally above the present price. It intersected the last candlestick’s wick, showcasing a possible resistance. In tandem with the CMF, this can be interpreted as a hint of sell-side momentum.
MATIC/USDT 1-Day Chart (Source: TradingView)
Additionally, the 50-day moving average, located at $0.5622 and above the existing price, further emphasizes this potential resistance. The collective insights from these indicators suggest that the market might be leaning toward a bearish direction.
Will $0.50 Support Hold or Will We See $0.45 Soon?
From an on-chain viewpoint, should MATIC breach the $0.50 support level, it might decline toward the $0.45 mark before encountering notable support. The In/Out of Money Around Price data shows that 23,250 holders bought 181.2 million MATIC tokens at a base price of $0.50. If these investors try to buy more MATIC to safeguard their positions, it could trigger a price recovery.
Polygon (MATIC) Price Prediction | GIOM data | (Source: IntoTheBlock)
Nevertheless, if negative sentiment grows stronger, MATIC’s value could drop to the previously forecasted $0.45. On the other hand, if the supporters of Polygon gain the upper hand, MATIC could surge past $0.80. It’s important to highlight that 66,000 accounts acquired 1.7 billion tokens at an average cost of $0.70, marking this price as a significant hurdle for the cryptocurrency.
Should these holders opt for early profit-taking while exchange reserves are high, it might set off a downturn for MATIC. Conversely, if the positive momentum breaches this selling pressure, we might witness MATIC crossing the $0.80 mark, unseen since July 2023.
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