The Polygon (MATIC) prices have been uneventful for the past few trading days. The daily charts show that the coin is moving in a tight range but remains above the August lows’ $0.65 support level. Technically, bulls have a chance, and prices are within the June to July 2023 high low, a reprieve for optimistic buyers.
Even so, for clear trend definition, MATIC prices should rise above $0.70, confirming bulls of August 8, or dump below $0.65, a move that will favor sellers. Before then, looking at how prices have been moving in the past few days, conservative traders can stay on the sidelines until the medium-term trend is defined.
Y00ts migrating, on-chain activity Remains Low
Indicative of the apprehensiveness across the board, Polygon’s on-chain activity is somewhat depressed. Bulls are optimistic, but non-fungible token (NFT) and decentralized finance (DeFi) activity is far from the 2021 peaks. This depression has impacted MATIC prices.
Last week, y00ts said it was migrating from Polygon to Ethereum and reconnecting with DeGods. While at it, y00ts will refund the $3 million grant extended by Polygon. As of August, the y00ts collection remained one of the most actively traded in the network.
Analysts observe that this could slow down Polygon’s expansion plans and lower on-chain activity. In the medium term, traders should watch how prices react at crucial liquidation or support levels. A conclusive thrust, ignited by fundamental factors, could light up demand.
Polygon (MATIC) Price Analysis
From the daily chart, MATIC is bearish. The coin is trading at around the 78.6% Fibonacci retracement level of the June to July 2023 trade range.
As per the MATIC candlestick arrangement, prices are in a tight range, with key reaction levels at $0.65 and $0.70, respectively. Accordingly, buyers can retake control if there is a conclusive breakout above $0.70 with expanding volumes. This, in turn, will confirm buyers of August 8, catalyzing demand that may see prices float to July highs of $0.88 in the medium term in trend continuation.
Conversely, any loss below $0.65 will cancel this outlook from an effort-versus-result perspective. Notable, prices are in range inside the August 8 bull bar. As prices range, trading volumes are also relatively low. Any dip below $0.65 may see MATIC crash to $0.55 in a bear trend continuation formation.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
If you found this article interesting, here you can find more Polygon News.
