Polygon (MATIC) is making significant strides through strategic partnerships and increased NFT activity, even as technical indicators suggest bearish momentum. The network has successfully onboarded major corporations such as Starbucks, Reddit, Meta, Nike, and Disney Metaverse, driving enterprise blockchain adoption. This strategic decision has further established Polygon as one of the most prominent players in the blockchain arena.
Polygon, meanwhile, has had its own booming NFT market lately, even beating Ethereum in weekly NFT sales. The network saw sales reach $24 million, creating a robust 52% year-over-year growth. This impressive growth speaks to both the popularity and trend of using Polygon’s blockchain for digital assets.
Transaction volumes on Polygon are up 12%, illustrating a direct correlation to higher network activity and user engagement. Developer activity on the platform has exploded — increasing by 30%. This increase is a major indicator of the tremendous interest and investment in building exciting new applications and services on the Polygon network.
Polygon’s MATIC price today is $0.192734 and a number of technical indicators are pointing toward strong bearish momentum. Meanwhile, the Relative Strength Index (RSI) is at 38.00, nearing the oversold threshold. This is a strong signal that the asset is undervalued and a good buy, but shows extreme selling pressure.
The Moving Average Convergence Divergence (MACD) at -0.0246 adds more conviction to the bearish movement. This would indicate that the downside selling momentum is more powerful than the upside buying momentum in the near term.
The Stochastic %K, another momentum indicator, is at 25.19 which is indicative of weak bullish strength. This suggests that there’s not much demand to buy anything at this price point.
Polygon’s SMA during the last 7 days is $0.37. This is in stark contrast to the SMA at 200 days, which sits at $0.69. This is shown by the short-term SMA to be below the long-term SMA, suggesting a bearish long-term trend.
The lower Bollinger Band is at $0.31, and the current price is testing this lower support level. If buyers come back too quickly, we could be looking at a price rebound. If the price falls below this support level, prepare for additional downward movement.
The main resistance levels to watch are $0.58, and major support levels are $0.35 and $0.33. These ranges will be important as we look to determine the short term price direction of Polygon.
Despite these bearish indicators, analysts are still hopeful about Polygon’s long-term potential. Supported by institutional adoption, technical upgrades and increased transaction volumes, analysts forecast a price target of $0.89 by the end of 2025.
The industry partnerships Polygon has already developed with global enterprises like Disney are going to catalyze incredible enterprise blockchain adoption. Besides taking the focus off of Ethereum, these partnerships further prove the technology behind Polygon. They’re developing tangible real-world use cases that drive more users and developers to the network.
