Cryptocurrencies Price Prediction: Bitcoin, Polygon & Dogecoin – European Wrap 18 December

Bitcoin price dips below $41,000 on Monday amidst BTC transaction fee surge

Bitcoin price drops below $41,000 on Sunday as BTC holders engage in profit-taking activities, seen in on-chain data. On December 15, BTC inflow to exchanges hit its highest level since March 2023. Bitcoin analysts on crypto Twitter believe that BTC’s uptrend is close to its end. 

Bitcoin Average Transaction Fee (BATF) climbed to 38.43 on December 18, as the network saw an increase in transactions. The average transaction fee on Bitcoin hit a 20-month high since unconfirmed transactions continued to pile up. 

Polygon price declines below $0.80, wiping out gains from past two weeks

Polygon (MATIC), the native token of the Polygon blockchain, broke below the $0.80 mark in the early Monday trading hours, extending the losses seen over the weekend. The token’s price decline comes after large-wallet investors, also known as whales, opted to collect profits after the price rally during the first two weeks of the month. MATIC’s on-chain metrics, particularly the surge in supply on crypto exchanges, suggest a bearish outlook for the token, whose value has fallen by around 14% over the past week.

MATIC supply on exchanges climbed from 9.05% on December 1 to 9.18% on Monday, hitting the highest level in the past six months. A large volume of MATIC tokens on exchanges indicates a rise in selling pressure, supporting a bearish thesis for the Ethereum scaling token.

Dogecoin retail traders increase DOGE holdings, meme coin could witness price recovery

Dogecoin noted a change in asset holdings in December. While large wallet addresses holding DOGE shed their holdings, during the dip, retail traders scooped up DOGE tokens. DOGE price is currently above a crucial support zone and the meme coin is likely poised to target the $0.1000 level again.

DOGE on-chain metrics are bullish and support the thesis of recovery in the asset. Three on-chain metrics support a recovery in the meme coin’s price - Active Addresses, DOGE distribution and Transaction Volume. Based on Santiment data, there is a bullish divergence in Dogecoin’s active addresses and transaction volume.