Polygon (MATIC) has been on fire in the altcoin market lately with a bunch of network upgrades, including the optimization of its staking and gas rates. As a result, the MATIC price has been pushing the boundaries and continues to break above crucial resistance levels.
Polygon network has also secured some significant partnerships, which have given it a huge boost and have helped drive its growth even further. However, MATIC’s resistance and support levels are inching closer, which may build a tendency for a downtrend.
Polygon Network Sees Bullish Fundamentals
The Polygon network has established its own league, setting new standards for layer-2 blockchain solutions. Polygon even surpassed the Ethereum network in providing unparalleled network efficiency. Moreover, powerful DeFi platforms, Aave and Uniswap, are migrating to Polygon, making a staggering result of a 3x surge in dApps on the network.
Additionally, the Polygon network is also ruling the NFT market as OpenSea reported 1.5 million NFT sales on the Polygon network, which is over 0.4 million NFT sales of Ethereum. The native token MATIC has also outpaced multiple coins recently with the sky-high TVL graph. Moreover, the daily transaction volume has witnessed multiple highs in the last few weeks, making it a lucrative investment opportunity in the community.
On-chain whale tracker, WhaleStats, revealed massive transactions between two MATIC whales, amounting to 2,061,476 MATIC worth around $2.6 billion. The massive momentum in the MATIC chain resulted in a significant surge of over 5%.
MATIC Price Forms Bearish Divergence
The fall of the Solana has played a significant role in giving the crown to the Polygon network in the NFT space. However, despite high trading volume in the MATIC price chart, the token has failed to bring any noticeable momentum till now. Additionally, rejections in MATIC’s ascending channel pattern have left investors on the verge of a bearish trajectory.
As of writing, MATIC’s price trades at $1.33, with a gain of 1.91% in the last 24 years. Analyzing the daily price chart, MATIC is poised to witness a severe downtrend in the upcoming days. MATIC develops a bearish convergence which is formed by the RSI with trading volume. If MATIC’s price fails to test its current resistance at $1.3, it may gear up for a negative momentum, which can bring the token down below the 31.8% Fib retracement.
If MATIC drops below the EMA-20 level at $1.16, it may take support at $1.08. However, the bearish analysis may become invalid if the token witnesses more interest from buyers and pushes its price above $1.5, from which a strong spike is expected to its Bollinger band’s upper limit of $1.84.