Polygon (MATIC) Price Analysis: Will Network Activity and Whales Hinder a Breakout?
Polygon (MATIC) has experienced a turbulent start to August, with a decline in price and network activity. Here are the key takeaways:
- Declining network activity: The number of daily active users on Polygon has been decreasing for the past three weeks, indicating a decline in demand for the token.
- Whale investors remain unconvinced: Despite the recent uptick in price, whales have been offloading their MATIC tokens, showing their lack of confidence in a potential price uptrend.
- Resistance at $0.68: MATIC faces difficulty breaking above the $0.68 resistance, which could prevent a bullish price breakout.
- Potential downswing: If the resistance level is breached, MATIC could rally toward $0.70. However, if support at $0.65 gives way, a downswing toward $0.60 is possible.
In conclusion, the lack of network demand and selling pressure from whales could hinder a breakout for MATIC. The upcoming days will be crucial in determining the direction of its price.
Hot Take: Will MATIC Overcome its Challenges and Rally?
MATIC’s price breakout will depend on its ability to attract more network activity and regain the confidence of whale investors. If it can overcome these challenges, it has the potential to rally higher. However, if the current trends persist, a pullback and further decline in price may be in store for MATIC.
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