Crypto Updates

24% Drop In 30 Days Despite Bullish Sentiment

24% Drop In 30 Days Despite Bullish Sentiment

Polygon (MATIC), which is the Layer-2 scaling solution for Ethereum, is currently experiencing an unusual circumstance. Although there has been a significant increase in the amount of network activity, the price of the cryptocurrency continues to be uncertain. Both a potential technical breakthrough and a persistently negative mindset are preventing it from moving forward.

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Polygon: Can Active Addresses Raise The Bar?

Polygon’s network was humming on July 8th, with an astounding 1.18 million active addresses. For the same period, this easily outpaced Ethereum (365K) and Bitcoin (594K). The increase in user activity stoked expectations of a positive breakout, especially as MATIC was trading over a crucial $0.50 barrier level.

MATIC price up in the last day. Source: Coingecko

Co-founder of Polygon Mihailo Bjelic excitedly provided this statistics, emphasising the increasing use of the network. Some cryptocurrency fans, meanwhile, were quick to label this as a “vanity metric.” They contended that robust economic fundamentals or important transactions are not always correlated with raw address count.

Although resistance lingers, the falling wedge pattern suggests a breakout.

Taking into consideration the technological aspects, it seems that things are getting better for MATIC. As the token has been moving in a falling wedge formation, which is commonly seen as a sign that an upswing in the market is about to occur, the pattern has been observed. In addition, as a result of a recent spike in price, MATIC came dangerously close to crossing the threshold of $0.50 for a brief while. It is probable that this is an indication of a future breakout, particularly if the volume of trade grows.

MATIC market cap at nearly $5 billion today. Chart: TradingView.comBut the bulls are up against an unyielding obstacle. As the mark has shown to be a strong resistance level in the past, a clear break above it is essential to the validation of the falling wedge breakout. Moreover, the general mood of the market is still biassed towards the bears. At the time of writing, MATIC was down 10% in the weekly timeframe, data from Coingecko show.

MATIC price down in the last week. Source: Coingecko

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