Polygon: Do MATIC Attempts to go up fail due to red resistance?

Polygon: Do MATIC Attempts to go up fail due to red resistance?

Following the recent successful completion of the Ethereum [ETH] Merge, several other tokens benefited from it. And one of them turned out to be Polygon [MATIC].  

In the past, the Polygon blockchain has made various attempts to reduce the scope of its network by releasing a green manifesto. However, they recently announced that their network area has decreased by 99% thanks to Consolidation.

 

Despite this positive development, MATIC has been monitoring ETH for its price action. The MATIC histogram is painted mostly red. At press time, MATIC is trading at $0.8126, representing a negative 9% growth over the past seven days. The current market capitalization of alt is $7,090,824,898.

Source: CoinMarketCap

What is happening in the community?

While there have been a number of other developments in the community that are likely to increase the price of MATIC, the stars have not supported MATIC. For example, MATIC was listed on the Binance Card in Argentina. This will allow cardholders to make purchases at more than 90 million merchants worldwide.

 

 

However, various on-chain metrics suggest that rather than bullish, we can expect further declines in the coming days. Santiment data notes that MATIC's realized market value (MVRV) index has fallen. This just indicates some dark days ahead.

Furthermore, trading volume on MATIC is also decreasing, which is usually a bearish sign. MATIC net deposits on exchanges are well above the seven-day average, indicating increased selling pressure.

Source: Emotions

However, several indicators are also in favor of the token, providing bullish hopes in the coming days. Interestingly, after a sharp drop last month, MATIC development activity spiked in the last week. Therefore, this can be seen as a positive sign as it reflects the efforts of the developers in improving the network system.

Additionally, MATIC's NFT transaction count also increased last week, indicating a higher number of active users. Hopes for better days have been further supported by data from CryptoQuant . The MATIC Relative Strength Index (RSI) remains neutral, suggesting the market could go either way. 

 

Sep 17, 2022

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