MATIC price displays technical bearish signals despite developments in Polygon


  • MATIC price risks drop to $0.68 before a rebound in Polygon’s native asset. 
  • Polygon Chain Development Kit recently integrated Celestia to aid development of applications in the ecosystem. 
  • Polygon’s Proof-of-Stake chain is processing over 10 million transactions a day, fueling a bullish thesis for MATIC adoption. 

MATIC, an Ethereum scaling token, is likely to observe further decline in its price. Polygon recently announced its integration with Celestia Org, a project that boosts the development capabilities of the chain.

Also read: Ethereum dips to crucial demand zone, analysts predict ETH price rally to $3,000

MATIC price declines despite bullish developments in Polygon

According to data from the institutional analytics platform Artemis, Polygon’s Proof-of-Stake chain is processing over 10 million transactions in a day. Crypto analyst and expert Lark Davis shared the metric in a recent tweet on X (formerly Twitter), stating that this marks a high level of adoption for Polygon.

As of December 7, the Polygon chain processed 10.6 million transactions as seen in the chart below. 

MATIC

Daily transactions on Polygon PoS. Source: Artemis 

In a recent post on X, Polygon co-founder Mihailo Bjelic announced the protocol’s integration with Celestia, a modular data network. This integration is expected to boost the development capabilities of the Polygon chain and introduce modular development for builders in the ecosystem. 

The integration is key since it lowers the barrier for launching high-throughput Layer 2 chains on Ethereum and reduces transaction costs by 100x, according to the co-founder. The solution will be available to developers launching Zero Knowledge (ZK) Layer 2 projects with Polygon’s CDK early in 2024. 

MATIC price faces risk of 18% decline

Polygon’s native token MATIC is at risk of a decline in its price. MATIC is trading at $0.8454 on Binance at the time of writing. The token’s price declined nearly 5% in the past 24 hours. The next key support level for MATIC is the upper boundary of the Fair Value Gap (FVG) at $0.6851. 

MATIC price drop to this level marks an 18% decline from $0.8454 and once the gap is filled, Polygon’s native asset is expected to rebound from this level and target the November 14 top of $0.9842. 

MATIC

MATIC/USDT 1-day chart

A daily candlestick close above the trendline will likely invalidate the bearish thesis. 


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