Polygon’s MATIC has reached $0.5, but all sights are busy monitoring where the price moves on the chart. Polygon has potential selling pressure coming its way. Estimates suggest that if the token stays within the range of $0.456 and $0.62, nearly 54.72% of buyers will experience a loss. It is anticipated that the selling pressure will increase between $0.552 and $0.569. An increase in Open Interest is supporting the rally. MATIC even teased a high of $0.5819 before dipping by 7.5%.
MATIC is now listed at $0.5217. It has plummeted by 3.84% in the last 24 hours and has surged by 24.49% in the last 7 days.
Technical indicators are bullish about MATIC, despite a volatility of 10.82% at the press time. The 14-day RSI is 72.03, and sentiment around it is largely neutral. It could next consolidate at around $0.56 or $0.58 before marking new downtrends.
Near-term projections about MATIC are optimistic. It is anticipated that the value of $0.676622 will increase by 26.80% over the next five days. It could be followed by a figure of $0.60549, which represents a surge of 13.50% from the current value. Polygon recently faced a challenge in regaining control of its community Discord server. One user lost $145,000 in assets after a hack shook up the community.
Polygon has regained control, but the intentions behind the hack remain unknown. One possibility is that the malicious actor simply wanted to disrupt the upcoming transition from MATIC to POL. It is slated to happen on September 4, 2024, as a mainnet upgrade.
The hacker had posted a message offering a pre-migration airdrop with a phishing link. Anyone who fell for it ended up losing their funds. Polygon responded by regaining access to the network, securing it, and temporarily disabling all external bots and integrations. Polygon is now conducting a security review and will post further updates accordingly.
Two factors are now playing within the ecosystem: selling pressure and the recent hack ahead of the mainnet upgrade. The latter is likely to fade out in the future, but the former will have a larger impact. Holders will shed weight from their portfolios if they do not see a larger value in holding on to their funds. That will create selling pressure, and the value will drop again, taking it away from the anticipated support levels.
The price may fluctuate based on the sentiments surrounding DEX volume and NFT sales. Both are reportedly on the rise. NFT sales are up 111%, and the number of buyers has surged 35% to $12.7 million and 88,000, respectively. Polygon turned out to be the fourth biggest player in the market, just behind Ethereum, Solana, and Bitcoin.
Source: https://www.cryptonewsz.com/polygon-faces-challenges-in-maintaining-gains/