Polygon Price Analysis: Bearish Trend Targets $0.41 as Super User Growth Hits 1.5M

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As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen bull runs and bear markets come and go. The current pullback phase in Polygon‘s 4-hour chart is a familiar sight, albeit a bit more intense than usual.

In the 4-hour chart, the Polygon price shows a significant reversal period, which is often referred to as a pullback. This pullback results in a sequence of lower highs, thereby establishing a temporary resistance trend, suggesting a potential sell opportunity for traders.

As a seasoned cryptocurrency investor with several years of experience under my belt, I can confidently say that I have seen many bull and bear markets come and go. In my view, the current situation with Polygon is a classic example of a bearish trend that has been persistently pushing prices downward. The repeated higher price rejections and the fifth bearish reversal from the bearish trendline are clear indicators of this downward pressure. However, it’s important to remember that market trends can change quickly, and I always remind myself to stay patient and keep a close eye on the charts for any potential bullish signals. As with any investment, it’s crucial to do your own research and make informed decisions based on your risk tolerance and financial goals.

Polygon Price Analysis

During the withdrawal phase, the price dropped below the 23.60% Fibonacci point, which is at approximately $0.4901. As a result, the Polygon token has lost the significant psychological barrier of $0.50 and is now trading at $0.4874.

Today’s trading has seen a 5.16% correction, which comes after the 2.73% decrease we experienced last night. These significant price drops often indicate increased bearishness in the immediate future. Furthermore, the Relative Strength Index (RSI) line for the past 4 hours has noticeably spiked during this recent market recovery.

Nevertheless, the temporary dip has pushed the value below the 50% mark. Moreover, the 100 and 200-day Exponential Moving Averages have crossed paths in a way that suggests a pessimistic trend for Polygon, according to technical indicators.

Polygon’s Achievements in 2024

Although there was a temporary decrease and a general sluggishness in 2024, as indicated by a year-to-date decline of 52%, the Polygon Network has made a substantial milestone.

2024 marked a significant milestone for the Polygon Network, with it onboarding the highest number of active users in the cryptocurrency market. These highly active users, referred to as “super users,” are recognized for executing over 100 transactions, making them more frequent traders compared to other blockchain networks.

Polygon recorded a 1.5 million inflow of super users. The total number of monthly superuser transactions for Polygon stood at 867.7 million. These numbers underscore the robust growth and adoption of the network.

Competing fiercely against Polygon, Optimism managed to secure the runner-up position, boasting approximately 800 million monthly transactions from its active users.

Supply and Demand Zones

Currently, Polygon’s MATIC token is approaching an immediate resistance area that spans from $0.4875 to $0.5016. This resistance area contains about 23.8 million tokens held by approximately 2,330 different addresses. The 24-hour volatility stands at 6.9%, and the current market capitalization is approximately $926.10 million with a trading volume of $4.68 million within the last 24 hours.

In the meantime, the price range for support is between $0.47 and $0.4847. Approximately 9.11 million Polygon tokens are being held in around 3,080 different addresses within the demand zone.

As a crypto investor, I’m observing that the gap between demand and supply levels in Polygon’s price action indicates a potential continued downtrend. This imbalance seems to hint at a period where bears might maintain control in the short term.

Polygon Price Targets

With the decline in the Polygon price falling below a significant support point, it seems probable that we’ll see a retracement phase testing the $0.4678 support level. If that support fails, the $0.4127 support may step in to halt the retracement.

For now, the market is leaning more towards a downtrend, but a possible upturn could be on the horizon due to a bullish RSI divergence at the $0.4636 support level. This could potentially lead to a surge past the current trendline if it materializes.

If things go as expected, it might boost the optimism of investors who are bullish on this market. Under these circumstances, the Fibonacci level at approximately $0.5768 could serve as a possible price prediction for the remainder of 2024.

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2024-12-26 18:46