MATIC displayed bearish signals as both its price and trading activity declined. Despite recent network upgrades such as Polygon 2.0, MATIC struggled and found support around the $0.68 mark. This indicates ongoing challenges despite efforts to enhance the Polygon ecosystem.
The cryptocurrency market has seen a slight correction, and Polygon (MATIC) is experiencing similar movements. Currently, MATIC’s bulls are facing challenges in sustaining their momentum. With a 1% price decrease in the last 24 hours and a noticeable slowdown in trading, sentiment around MATIC seems to be shifting towards bearish. Investors are now questioning if the bears are gaining control once again.
MATIC Shows Signs of Deceleration in Performance
Recently, MATIC’s performance has exhibited clear signs of deceleration, characterized by a simultaneous decline in both its price and NVT (Network Value to Transactions) ratio. Typically, a downturn in the NVT ratio suggests undervaluation. However, given the concurrent drop in price, it also indicates a bearish sentiment prevailing among traders.
Examining MATIC’s social volume reveals a similar pattern. There is a noticeable divergence between the trajectory of its price and social volume — both are declining in tandem. Notably, the significant spikes in social volume observed in early February and mid-April, which correlated closely with price peaks, have been absent in recent weeks. This quieter social activity mirrors the subdued price action observed during this period.
Source: Santiment
MATIC Faces Resistance at MA200 Amidst Bearish Sentiment
Recently, MATIC encountered the MA200 as a resistance point but struggled to maintain above it, highlighting a bearish sentiment in the market.
Currently, the Relative Strength Index (RSI) sits near the midpoint at 51.59, indicating a balance between buying and selling pressures without a clear directional bias.
If MATIC’s price drops below the $0.70 level, the next significant support is expected around $0.68, reflecting a previous low from earlier in the month’s consolidation phase.
Conversely, the resistance level is firmly established by the MA200 at approximately $0.7333. A decisive breakthrough above this level could propel MATIC towards the next resistance points at around $0.74 and $0.78, which were recent highs before subsequent price retractions.
Source: TradingView
Polygon’s Network Activity and Upcoming Upgrades
Beyond price and trading volumes, Polygon’s network activity has recently been influenced by significant developments. The Polygon team unveiled Polygon 2.0 alongside the introduction of Polygon Improvement Proposals (PIPs). These proposals outline a transition to a new token, POL, which would facilitate a one-to-one migration from MATIC, incorporating a new emission mechanism.
The potential impact of these upgrades on Polygon’s network activity and MATIC’s price action hinges greatly on community engagement and the successful implementation of the proposed changes. These developments aim to enhance functionality and possibly influence market dynamics as they unfold.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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