Polygon (MATIC) Price Prediction: Will It Break $1.15 Support?

Polygon has retraced in the market today, trading at $1.20, representing a nearly 3% decline from yesterday’s closing price. Also, the 24-hours trading volume is down by 26.57%, indicating bear pressure. 

MATIC dipped from $1.53 on February 17 to $1.20 on February 28, 2023. This dip reflects a downtrend for the asset. It implies that bears have the upper hand in the market. However, the bulls are preparing for another charge to push for a recovery. 

Factors Influencing Polygon’s Price 

Different factors on a network could be responsible for its price action. Negative events could increase the fear index in the market and lead to a decline in the price of an asset. Conversely, positive events could fuel the greed index and drive traders and investors into an accumulation frenzy, causing an increase in an asset’s price. 

Here are some notable and recent events on the Polygon network that might have influenced its price in the past week.

Polygon Records High Network Activity

Artemis, a crypto analytics platform on February 28, stated that Polygon recorded high on-chain activity in the last few months. The increased gaming activity on the network is responsible for the upsurge in traffic. 

Polygon $MATIC is up 61% YTD

3rd most transactions
4th highest number of active addresses
4th largest in DEX volume
4th in TVL

👉 What's driving Polygon activity? What are people doing on Polygon? pic.twitter.com/CZKC0oLadN

— Artemis (@artemis__xyz) February 28, 2023

The report stated that gaming was responsible for 23% of all transactions made on the Polygon network. Also, gaming activity contributed 32% of all fees spent on the Polygon network within this timeframe. 

Gaming is the dominant category on Polygon today.

– 32% of fees spent
– 35% of active addy
– 23% of transactions pic.twitter.com/cL3FNsy1pR

— Artemis (@artemis__xyz) February 28, 2023

However, Polygon also saw a decline in DeFi activities and a drop in its Total Value Locked (TVL). This decline might result from the decreasing dApp activity on the network. Dapp Radar reports that dApps such as Balancer (BAL) recorded a decrease in activity. Also, the active wallets on the network dropped by 16.79% in the previous week.

Polygon’s Decentralized Exchanges Feel the Impact Of The Decline

According to Dune Analytics, The Decentralized Exchanges (DEXes) on the Polygon network saw a decrease in trading volume from $241 million to $185 million. This decline hurt the TVL, which reduced from $1.23 billion to $1.16 billion within a week.

Also, the revenue generated by Polygon fell by 34.1% in the past week. MATIC, the platform’s token, felt the impact of this decline with a drop in its price within this period. Polygon Network has to recover from this setback and leverage the increased gaming activity.

0x Launches Tx API On Polygon

Ox, a developers hub, announced the launch of Tx relay API on Polygon and Ethereum to enable developers to build better applications. Robinhood Wallet, available on iOS devices worldwide, is the first partner to benefit from TX Relay API.

We’re excited to announce that 0x’s new Tx Relay API is powering crypto trades on @RobinhoodApp Wallet! 🎉

Robinhood users can trade crypto with no network fees on @0xPolygon⚡

Learn more and join the waitlist for early access to Tx Relay API👇https://t.co/4miDZshRlI

— 0x (@0xProject) March 1, 2023

The TX Relay API is a framework that makes it faster for users to swap tokens and developers to build smarter applications for the Web3 revolution. This upgrade will also benefit polygon users, who can build with the tools on the platform to build better applications. 

Polygon Price Prediction

MATIC has formed a red candle on the daily price chart today. The asset seems to be recovering from a downtrend. The Relative Strength Index Indicator (RSI) is at 45.67 and points downwards, a bearish sentiment for the asset.

The Fibonacci retracement tool shows that MATIC found support at the 50% Fib level ($1.15). Having bounced off this support, a resumption of the uptrend before the retracement is most likely. 

MATIC has remained above its 50-day and 200-day Simple Moving Averages (SMA), a bullish sentiment for the long and short term. A rally will likely occur in the coming days as more traders enter buy positions. 

The support levels are $1.15, $1.17, and $1.21; the resistance levels are $1.27, $1.30, and $1.34. MATIC trades at $1.21 at press time, just above the $1.21 support. Despite the current pullback, expect MATIC to test the $1.27 resistance in the coming days once it resumes its uptrend.

MATIC Alternatives

While MATIC experiences a pullback due to several factors, some altcoin presales reward early investors and are worth a try.

Fight Out (FGHT)

Fight Out is changing the fitness industry and redefining the move-to-earn (M2E) concept. It is a platform that rewards users for exercising and completing fitness tasks. Users can set up a customized fitness plan tailored to their demands and peculiarities. 

The platform provides a mobile app that equips users with vital tools like fitness statistics to monitor their progress. Users receive REPs tokens as rewards redeemable as discounts for products, subscriptions, and gym memberships, among other perks.

The second phase of the FGHT token presale has raised more than 4.4 million, with initial investors set to receive 10% extra tokens as incentives. The network is hosting a giveaway to reward one lucky user with $250,000 worth of FGHT tokens after completing some tasks.

C+Charge (CCHG)

C+Charge is a platform determined to offer a more effective method for recharging Electric Vehicles. Tapping into the vast potential of blockchain technology, users can avail themselves of carbon credits for an effective charging mechanism monitored with proper analytics.

 After a successful charge, users get rewards as CCHG tokens convertible to carbon credits. Also, the platform will burn the leftover presale tokens to control inflation and increase the value of the CCHG tokens in circulation. Here is a guide on how to buy these tokens at the presales.

The CCHG presale stage six is a few days from launching, with outstanding success recorded in the past five presale stages. CCHG is the token that powers the ecosystem and serves as a reward token for users. 

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