Polygon’s native cryptocurrency, MATIC, has been making headlines recently as it embarks on a rollercoaster ride in the volatile crypto market. While the coin has witnessed a slow climb in its price over the past week, there are some cautionary signs that investors should be mindful of.
August wasn’t particularly kind to MATIC, as it experienced a decline in total value locked (TVL) and daily transactions, as shown in the chart below. However, things took a turn on September 14, when Polygon announced the implementation of Polygon 2.0, accompanied by the release of three Polygon Improvement Proposals. This news injected optimism into the market, leading to a slow but steady increase in MATIC’s price.
Despite the recent uptick, it’s essential to maintain a broader perspective. The higher timeframe trend for MATIC remains firmly bearish. However, there is a glimmer of hope for short-term gains. The Relative Strength Index (RSI) indicates that the bulls could drive prices higher, with the RSI moving towards the neutral 50 mark.
Analyzing further, the spot Cumulative Volume Delta (CVD) has been down since September 16, signaling a lack of demand over the weekend. While the funding rate appears positive, MATIC bulls should exercise caution and consider waiting for a potential move toward the recent lows at $0.511 before considering bids.
On the positive side, the On-Balance-Volume (OBV) has shown a minor increase since September 13, suggesting that some buying pressure is present in the market. However, it’s worth noting that trading volume has been relatively muted in the past few days, indicating a degree of uncertainty among traders.
MATIC currently trades at $0.529239, with a 24-hour trading volume of $195,262,621. Given the volatile nature of the crypto market, these numbers are subject to change. MATIC holds the 14th position in the CoinMarketCap rankings, boasting a live market cap of $4,932,229,139.
In related developments, Canto, a prominent Layer 1 blockchain, is embarking on a remarkable journey towards a zero-knowledge Layer 2 (ZK L2) on Ethereum. This transition is possible thanks to the Polygon Chain Development Kit (CDK). This migration is significant because it goes beyond technology—it’s driven by ethos.
