Despite a 52% YTD decline, Polygon records the highest number of new super users in 2024. Price analysis reveals strong support at $0.4636.
The Polygon price in the 4-hour chart reflects an intense pullback phase. The pullback rally creates a lower-high formation, generating a short-term resistance trendline.
This supply element has kept the bullish growth under check, with multiple higher price rejections. Currently, Polygon is taking its fifth bearish reversal from the bearish trendline, reflecting persistent downward pressure.
The pullback phase has broken under the 23.60% Fibonacci level at $0.4901. Losing the $0.50 psychological mark, the Polygon token is trading at $0.4874.
This marks an intraday correction of 5.16% following the 2.73% drop last night. Such sharp price drops signal heightened bearish sentiment in the short term. The 4-hour RSI line has surged significantly over the recent recovery.
However, the short-term pullback has resulted in a drop under the 50% line. Furthermore, the 100 and 200 EMA lines have given a bearish crossover; therefore, the technical indicators are signaling a bearish outlook for Polygon.
Despite the short-term correction and the overall slowdown in 2024, reflected by the negative year-to-date growth of 52%, the Polygon Network has marked a significant achievement.
In 2024, the Polygon Network added the most new super users to the crypto market. Super users are categorized as users known for making 100-plus transactions, more than any other chain.
Polygon recorded a 1.5 million inflow of super users. The total number of monthly superuser transactions for Polygon stood at 867.7 million. These numbers underscore the robust growth and adoption of the network.
Giving a tough fight to Polygon, Optimism came in second in the race, with nearly 800 million monthly super user transactions.
Based on the in/out of the money around the price, Polygon MATIC $0.48 24h volatility: 7.0% Market cap: $924.77 M Vol. 24h: $4.77 M is facing the immediate supply zone extending from $0.4875 to $0.5016. The supply zone holds a volume of 23.8 million tokens by 2.33k addresses.
Meanwhile, the support extends from $0.47 to $0.4847. The demand zone holds 9.11 million Polygon tokens in 3.08k addresses.
With the massive difference in demand and supply zone volume, the Polygon price is expected to continue the pullback phase. This discrepancy suggests that bearish control could persist in the near term.
As the downfall in the Polygon price breaks under the crucial support, the pullback phase is likely to retest the $0.4678 support level. Beyond this, the $0.4127 support is likely to hold off the pullback phase.
A potential bullish reversal remains on the table, but bearish momentum dominates for now. Meanwhile, a potential bullish reversal from the $0.4636 support level due to the bullish RSI divergence could result in a trendline breakout rally.
If this scenario plays out, it could reinvigorate confidence among bullish traders. In such a case, the 50% Fibonacci level at $0.5768 is a potential price target before the end of 2024.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
