Ethereum

bullish

Polygon

Polygon’s native token MATIC price has dropped by 25% after jumping to a two-month high of around $0.58 on Aug. 25. However, the price could not sustain momentum and fell back rapidly to a 10-day low of $0.437 on Aug. 29, following an additional 5% decline over the past 24 hours. 
Last week’s bullish momentum on the daily chart led to a breakout from a 50-day descending channel pattern. However, the rally failed to break through the<a href="https://coinmarketcap.com/currencies/polygon/" rel="nofollow noopener" target="_blank"> $0.60 mark</a>, causing a rapid pullback to the previous resistance trend line. This retest and strong momentum suggest a potential continuation of the bearish trend. According to Coingecko, MATIC has remained down 85% from its <a href="https://www.coingecko.com/en/coins/polygon" rel="nofollow noopener" target="_blank">December 2021</a> all-time high of $2.92. 
<figure class="wp-block-image aligncenter wp-image-581106 size-full">
 <img loading="lazy" decoding="async" width="956" height="599" class="wp-image-581106" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Polygon-price-plummets-25-after-failing-to-sustain-a-44-surge.png" alt="Polygon price plummets 25% after failing to sustain a 44% surge" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Polygon-price-plummets-25-after-failing-to-sustain-a-44-surge.png 956w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Polygon-price-plummets-25-after-failing-to-sustain-a-44-surge-300x188.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Polygon-price-plummets-25-after-failing-to-sustain-a-44-surge-768x481.png 768w" sizes="(max-width: 956px) 100vw, 956px"> 
 <figcaption class="wp-element-caption">
 MATIC price -Source: Coinmarketcap
 </figcaption> 
</figure> 
The daily <a href="https://polygon.io/knowledge-base/article/what-is-a-relative-strength-index-rsi" rel="nofollow noopener" target="_blank">Relative Strength Index</a> (RSI) has swiftly fallen from the overbought territory, plunging below the 50% midpoint. Meanwhile, the MACD indicator has quickly reversed, with the MACD line crossing below the signal line, further indicating bearish sentiment. As a result, Polygon’s price is flashing warnings of a continued decline. 
<h3 class="wp-block-heading" id="span-style-font-weight-400-polygon-network-sees-a-spike-in-active-addresses-and-dormant-coin-activity-span">Polygon network sees a spike in active addresses and dormant coin activity</h3> 
During MATIC’s corrective phase, <a href="https://x.com/santimentfeed/status/1828857731446649125" rel="nofollow" target="_blank">Santiment pointed</a> out that the Polygon network has been in a downtrend since the broader market pullback began in March. 
However, there are signs of recovery, with an uptick in dominant coin movement and a surge in <a href="https://polygonscan.com/chart/active-address" rel="nofollow noopener" target="_blank">active addresses</a> on the Polygon network. 
Notably, the number of active addresses has reached its second-highest level in 2024, with 3,369 MATIC addresses, and there has been significant movement of 69 billion MATIC tokens. Santiment stated: 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 A notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon. <cite>Santiment&nbsp;</cite>
</blockquote> 
These increases can be attributed to the growing adoption of decentralized applications (dApps) on the Polygon network and developers’ growing interest in the scalability offered by this Layer-2 solution. In particular, the number of daily transactions on the Polygon network has surpassed that of the main Ethereum network on several occasions, indicating a growing preference for the speed and reduced cost of transactions on Polygon. 
<h3 class="wp-block-heading" id="span-style-font-weight-400-matic-price-breaks-below-key-fibonacci-levels-span">MATIC price breaks below key Fibonacci levels</h3> 
According to <a href="https://www.babypips.com/learn/forex/fibonacci-retracement" rel="nofollow noopener" target="_blank">Fibonacci levels</a> in the falling channel pattern, Polygon’s bearish trend has not reached the 38.20% level near $0.60 and has dropped below the 23.60% level at $0.50. 
The next support levels for Polygon are at $0.40, with a key baseline at $0.38 and further downside risk at $0.3649, representing a potential 19% decline. If a reversal occurs after the retest and the broader market recovers, the next resistance levels are at the 23.60% Fibonacci level at $0.50 and the 38.20% level at $0.60. 
Amid these developments, <a href="https://www.binance.com/en/support/announcement/binance-will-support-the-polygon-matic-token-swap-to-polygon-pol-6a6de383727f4659a3050f7982e1620f?hl" rel="nofollow noopener" target="_blank">Binance announced </a>support for Polygon’s upcoming network token migration from MATIC to POL, scheduled for September 4.

Polygon price plummets 25% after failing to sustain a 44% surge

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