Polygon (MATIC) Tackles $0.50 Resistance on 30% Volume Surge

What is driving MATIC’s slow and steady climb against the thick $0.50 resistance barrier?

Mountain climber holding onto a wireframe cliff above a fiery black hole.
Created by Gabor Kovacs from DailyCoin
  • Struggling for traction since Ether’s switch to PoS, MATIC sinks 23.5%.
  • Establishing a falling wedge, MATIC hovers around confluent resistance.
  • Despite bears ruling, a 30% Derivatives upturn pushes volume to $369M.

Crypto bears have taken Polygon (MATIC), a popular Layer-2 alternative cryptocurrency, for a wild roller coaster ride, resulting in a 23.5% drop over the past 30 days. Indeed, Polygon’s long-term price goal of $1 has not been seen since April 1, 2024.


However, the Layer-2 altcoin is now battling hefty resistance at $0.50. This resistance barrier served MATIC as a key catalyst throughout September and October in 2023, laying the foundation for MATIC’s eventual bounce back above $1.

MATIC to Burst Out of the Falling Wedge?

Last Friday, Polygon dipped to yearly lows at $0.43. After that, it took two days for MATIC to regain momentum and spark above $0.50, but the resistance line was once again rejected due to trading volume not catching up with the northbound trajectory on Sunday and the following Monday morning.

However, the #24 cryptocurrency by market cap retested the $0.50 price barricade again on July 9, 2024, as MATIC hovered above the checkmark for the bigger part of the day. As shown in Nina Trader’s post on X, bolstered by activity in Derivatives markets, Polygon is looking to break out of the falling wedge geometrical pattern.

Polygon’s Network Activity Tops BTC & ETH

As the demand for Polygon in Derivatives markets returns, cryptocurrency traders have generated $369 million in daily trading volume this Tuesday. Boosting this metric by 30.30% over the past 24 hours, MATIC also recorded an increase in Open Interest (OI), which measures the density of unsettled leveraged positions across Derivatives markets.

Derivatives markets data from CoinGlass.
Derivatives markets data from CoinGlass

Even though the general sentiment around Polygon gives an edge to the crypto bears, the renewed interest in the token is favorable for a price trend reversal. Binance’s customers are the most bullish on MATIC, showcasing a bullish long versus short position ratio at 3.2052. This means that long MATIC positions outscore short-sellers threefold.


The overall long versus short ratio stands at 0.92 in the latest 24-hour period, signaling that traders lack belief in the coin, as they tend to place more money on short-selling leveraged plays. In a broader perspective, the rising volumes on both Derivative and Spot markets suggest that investors are coming back to Polygon’s chain, but a rebound rally is yet to come.

According to Mihailo Blejica, one of Polygon’s co-founding members, the Layer-2 chain’s active crypto addresses on July 8, 2024, outpaced both leading blockchains, Bitcoin and Ether. Polygon’s active addresses stood at 1.18M, while BTC and ETH recorded 594K and 365K active on-chain addresses during the same time frame.

While this is favorable for the falling wedge pattern to produce a breakout, other key on-chain factors shall be considered. First of all, Polygon’s (MATIC) Chaikin Money Flow (CMF) dwelled slightly above zero, flashing 0.15 as of press time. Indicating a refreshed money stream into the token, the CMF index is yet to boost MATIC’s market value or the Relative Strength Index (RSI), which remained neutral on both 4-hour and 1-hour technical charts.

On the Flipside

  • Polygon’s co-founder Mihailo Bjelic is facing immense backlash on X, as many crypto enthusiasts perceive the active addresses count as a “vanity metric.”
  • Instead, crypto fans are drawing attention to the fees collected in yearly terms, where both Bitcoin and Ethereum outscore Polygon by a long distance. 

Why This Matters

Technical patterns can help assess the shifting crypto market dynamics without the consideration of social sentiment.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.