Polygon Network is one of the top players in the blockchain industry. However, the native token MATIC has been steadily declining over the past few weeks. This is not a surprise as many other altcoins are also experiencing the same downward movement due to the negative market sentiment.
But while the volatility of MATIC’s price can present a profitable opportunity for traders, it can also pose a risk for inexperienced investors.
Current market sentiment for MATIC
Over the past day and the previous seven days, MATIC is down 6.9% and 20.3% respectively. According to an on-chain analytics platform, Sanitationmillions of MATIC tokens were transferred between addresses on the exchange.
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These large whale trades on the Polygon network could fuel the downtrend as it suggests holders are selling their MATIC tokens. At the time of writing, the price of MATIC is $0.8675, stand fora decrease of 44.53% since February 18, 2023.
At the time of writing, the CFGI indicator also confirms the bearish sentiment surrounding the MATIC price as it shows 38, signaling fear among investors. This suggests that MATIC is in a phase where investors and traders are afraid to hold the asset. This could result in more landfills if the bulls stagnate.
Meanwhile, MATIC’s 24-hour trading volume is down 15.38% to $375 million. A decrease in daily trading volume shows that there is less activity on the network. However, MATIC still maintained its number 9 position with a market cap of $8 billion CoinMarketCap.
Polygon (MATIC) price analysis
MATIC trades under both the 50-day and 200-day SMAs, indicating a short and long term bearish trend. Traders can use this current trend to sell or avoid MATIC until it fully recovers.
MATICS RSI value of 22.99 suggests that MATIC is currently in the oversold zone. This also implies that the price of MATIC has fallen rapidly and may be due for a retracement.
The moving average convergence/divergence (MACD) below the signal line confirms the bearish trend. This suggests that MATIC is currently in a downtrend. The histogram is also below zero, confirming the bearish momentum.
MATIC trades between the significant support And resistance levels for $0.7438 and $01.0306 respectively. The asset has already broken the first primary support at $0.9335 and is moving strongly into the next support level.
With this strong bearish momentum, the bears could break the next support and eventually reach the final $0.51 support. However, if the bull could take back control, we could see MATIC reach the strong resistance level at $1.1900.
Featured image from Pixabay and chart from Tradingview
