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Polygon Surges in User Growth But MATIC Still In Decline — Will the Price Follow?

Last Updated January 26, 2024 3:22 PM
Nikola Lazic
Last Updated January 26, 2024 3:22 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Polygon has shown both user growth and adoption recently.
  • MATIC is trading at its significant support of $0.70.
  • Chart analysis indicates the start of a bull cycle.

In 2023, the blockchain industry saw a significant shift, with Polygon emerging as a major player and showing substantial user growth, contrasting with Ethereum’s modest performance, particularly in the NFT sector. 

Polygon‘s rise in ‘acquired users’ — those with at least two transactions — almost matched Ethereum‘s. This indicates a broader trend of users exploring alternatives to established blockchains.

Polygon user growth
Source: Flipside

The industry is now moving towards a focus on Decentralized Finance (DeFi). 2024 is expected to features further growth, led by platforms like Polygon, and new blockchain networks. This shift represents a pivotal moment in the blockchain sector, with increasing competition and a potential change in market leadership.

Despite these developments, the price of MATIC has yet to pick up the pace. Can MATIC start to regain some of its previous bull cycle values? 

MATIC Price Analysis

After retesting its horizontal support zone and making an interaction with its upper level of $0.50 in September and October, it finally started a new uptrend. On December 27, it peaked at $1.10, only slightly higher than its previous high of $0.98 on November 15. 

daily chart
The sideways range is seen.

As we can see from the daily chart, December’s high came as a retest of the larger descending triangle resistance anchored at its all-time high of nearly $3. It was its second consecutive lower high and resulted in a sideways range that brought the price back to its current price of around $0.75. 

This is another horizontal level, and considering that the previous uptrend started on a higher low, we could have seen the start of a new bull cycle for the price of MATIC. However, we can only say conclusively once the price breaks out from this descending resistance. 

There is a chance that the uptrend from October was the first sub-wave of a larger uptrend. The following sideways range, being its first bull market correction to the 0.618 Fibonacci retracement level, could end as a bounce, with the price now headed to another uptrend.  

 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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