There is still hope for MATIC after a failed ATH attempt

MATIC has hit ATH at $ 2.7 for nearly 2 months and has not returned there, despite market participants having high expectations for a new high. Last week MATIC missed its chance to get close to ATH, although the price chart looks bullish as most of the market is consolidating.

At the time of writing, Polygon’s native token is trading at $ 2.01, nearly 17% below its multi-month high of $ 2.57 set last week.

MATIC 4-hour chart | Source: Tradingview

Not completely desperate yet

While MATIC missed ATH, Polygon PoS set a new ATH in network sales in almost 4 weeks. Revenue grew 44% to $ 136,000 per day. The average cost per transaction last week was $ 0.035 and the average transaction price increased 53% month on month.

The source: Raphaelsignal

Polygon PoS’s user base has grown steadily like last week, with the number of Daily Active Users (DAUs) reaching 35,000, an increase of nearly 4%. This equates to 61.29% of Ethereum’s active user base.

Source: Raphaelsignal

This sustained growth is due to the size of the group of investors held and the improvement in the various corporate loyalty rates. In particular, Polygon regularly attracts over 250,000 new users per week with an average group size of 347,000 for the last month. The network looks stable and is about to explode, but what kept prices low?

What is still missing?

Given the volatile price movements, the network appeared to be trying to rebound when Polygon announced it was buying the startup Mir, which is building ZK technology for $ 400 million. However, MATIC’s price still hit a lower low as the asset has lost more than 10% in the past few days.

If you look at MATIC’s short- and medium-term MVRV, which is still falling, it looks like the price hasn’t gotten into the lower risk zone yet, leaving a lot of short-term declining territory. In terms of price, it looks as if MATIC will still be faced with many difficulties in the short term.

The source: Sanbase

While the long-term uptrend is flat, MATIC is currently lacking the institutional support it had in June 2021 when the Total Value Locked (TVL) hit $ 10 billion. Since then, TVL has fallen more than 50% and hasn’t moved much in the past 2 months.

The most recent MATIC rally also lacked retail euphoria and institutional interest due to the low trading volume compared to the May rally (as shown in the following graphic). TVL stagnation) could be the reason why the price isn’t making ATH new.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page