- MATIC’s trading activity and price have plunged. The bulls might be sitting this rally out.
- Despite network upgrades like Polygon 2.0, MATIC faced declines with a key support at $0.68.
- MATIC showed bearish signs with a decrease in price and trading activity.
MATIC’s price action is concerning: Are bulls losing control?
MATIC Turns Bearish
MATIC’s performance has shown clear signs of deceleration, marked by a simultaneous dip in both price and NVT ratio. Typically, an NVT ratio downturn suggests undervaluation, but given the concurrent price fall, it would also mean a bearish sentiment is taking hold among traders.
Social Volume and Price Trajectory
Turning our attention to MATIC’s social volume, we see a similar trend. There is a clear divergence between its price trajectory and the social volume — they’re both tumbling. The pronounced spikes in social volume in early February and mid-April, which closely align with price peaks, are absent in recent weeks, paralleling a more subdued price action.
Technical Indicators
Recently, MATIC tested the MA200 as a resistance point but failed to sustain above it, indicating a bearish sentiment. The RSI is currently near the midpoint at 51.59, suggesting a balance between buying and selling pressures without clear directional strength. Should MATIC’s price drop below the $0.70 level, the next key support is likely near the $0.68 mark, a previous low from the consolidation phase earlier in the month. Conversely, the resistance level is firmly established by the MA200 at approximately $0.7333. A decisive break above this line could push MATIC towards the next resistance at around $0.74, followed by $0.78, which are recent highs before the price retracted.
What’s Been Going on with Polygon?
Beyond price and trading volumes, it’s important to consider Polygon’s network activity. Recently, the team unveiled Polygon 2.0 and the Polygon Improvement Proposals (PIPs). These proposals include the transition to a new token, POL. This token would enable a one-to-one migration from MATIC with a new emission mechanism. The potential impact of these upgrades on Polygon’s network activity and MATIC’s price action will depend heavily on community participation and the successful implementation of the proposals.
Conclusion
In summary, MATIC’s recent price action and trading activity suggest a bearish sentiment among traders. Despite the promising network upgrades and improvement proposals, the market’s response has been tepid. Key technical indicators and social volume trends further reinforce the bearish outlook. Investors should closely monitor the support and resistance levels, as well as the implementation of Polygon’s proposed upgrades, to gauge future price movements.
