MATIC remains above $0.50 as increased chain activity attracts bullish investors.

MATIC remains above $0.50 as increased chain activity attracts bullish investors.

The Resilience of Polygon (MATIC) amidst Bearish Pressure

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Polygon (MATIC), a prominent Ethereum layer 2 network, has managed to maintain its position above the $0.50 support level despite recent bearish pressure. This is a significant accomplishment considering the tokens’ recent decline below this threshold. As of now, MATIC trades at $0.51, showing signs of recovery. Although some observers are concerned about the potential for a further drop, existing MATIC holders continue to transfer their tokens to exchanges without any indications of a change in the future direction of the token.

The past year has been challenging for Polygon, as it has experienced similar trading patterns to other altcoins due to market squeezes. Over the past 24 hours, the token has seen a decline of 1.08%, and a 5.95% decrease over the past month. However, recent developments suggest that bullish activity could be on the horizon for MATIC.

Bulls Celebrate Renewed Activity

The bulls have faced difficulties in pushing the MATIC price above the $0.50 level, despite their efforts to maintain pressure. However, recent metrics indicate that increased bullish activity might be emerging. Volumes and network activities show positive signs of renewed market participation.

Over the last 24 hours, trading volume across major exchanges has increased by 18%, positioning MATIC as the 13th largest cryptocurrency based on this metric. Data from on-chain analytics provided by CryptoQuant reveals that on September 22, Polygon recorded its highest number of transactions in 50 days, reaching a total of 4,621. This surge in demand has reinforced the resolve of the bullish investors, who are hoping for a potential upward trajectory to counterbalance any potential mass selling triggered by the increased token transfers to exchanges.

It is noteworthy, however, that the network’s activity has not consistently maintained the same level of intensity since September 22, failing to reach the 4,000 daily transaction mark in subsequent days. This decrease in activity may be attributed to the disruption caused by Binance’s announcement to delist Polygon’s non-fungible tokens (NFTs) from its marketplace on September 26. Consequently, within the following three days, MATIC holders transferred over 3.5 million tokens to exchanges, raising concerns of an impending sale.

Developments in Q3 Can Support Bull Pressure

Despite the setbacks faced by the network, Polygon has made significant advancements in recent months. On August 11, the company announced the release of the zkEVM testnet, a collaboration between Polygon Labs and Immutable. This upgrade is regarded as a crucial step toward scaling, improved security, and reduced costs within the blockchain ecosystem.

Another notable development by Polygon is the launch of the Lufthansa Uptrip Loyalty Program, which rewards users with NFTs for flight-related activities. The program offers users specific collections, and upon completion, users receive unique and tailored rewards such as business vouchers and free miles. The extensive range of options includes cities like Lisbon, New York, Rio de Janeiro, and Singapore, as well as airplanes such as Airbus A320, Boeing 747, and Embraer 190. Special milestones, such as flying on New Year’s Eve or crossing the North Pole, are also included within the program’s special collection.

In conclusion, despite recent bearish pressure, Polygon (MATIC) has demonstrated its resilience by maintaining its position above the $0.50 support level. Recent developments and renewed bullish activity indicate a potential upward trajectory for the token. With the ongoing improvements and upgrades within the Polygon ecosystem, the network is well-positioned to withstand market fluctuations and capture the interest of both investors and users alike. As the blockchain industry continues to evolve, Polygon serves as a testament to the potential of Ethereum layer 2 networks in addressing scalability, security, and cost-related challenges.