By Franklin Smith
The overall cryptocurrency industry encountered enormous slumps on July 25. As a result, most alternative tokens resorted to downtrends. Polygon (MATIC) is among the alt, dropping around 8.59% within the past 24 hours (Coinmarketcap data).
Moreover, the ETH-based project lost 19.83% of its value within the past seven days. It was among the top 20 cryptos with the highest losses. While publishing this post, MATIC hovered 73.9% lower from its $2.90 all-time high.
It was likely that most altcoins would mimic Bitcoin’s downside. Meanwhile, BTC lost 3.58% within the previous seven days. So, why did Polygon underperform more than the world’s largest crypto?
About Time?
MATIC presented significant gains between July 14 and July 18. Meanwhile, this timeframe saw prices moving to $0,92 from $0.54. That meant reasonable returns for investors. Moreover, the 4hr chart showed MATIC’s support subsequently improved during the time.
It climbed to $0.75 from $0.54. The prevailing occurrences might not surprise as MATIC surrendered its support floor (between $0.86 and $0.82) in July 2022. Though it recovered to $0.87, price falls were imminent.
Though the 20-period EMA (Exponential Moving Average) stayed beyond the 50 Exponential Moving Average for a while, it might mislay its dominance soon. While publishing this blog, the 50EMA was ready to climb beyond the 20EMA.
That state could make it essential for Polygon traders to be attentive. That’s because another decline could accompany the 8% fall.
The Relative Strength Index’s position also appears to match EMA’s projections. While writing these lines, the RSI swayed beneath the mid-line at 43.69. That shows MATIC sellers control the marketplace.
Meanwhile, it might be a lucrative entry level for buyers. Nevertheless, investors should remain alert as MATIC exhibits signals of further price plunges.
On-Chain Metrics
Price declines also saw MATIC’s 24hr volume plunging. Also, the daily active addresses shrunk. The metric hovered at 3,349 on July 25 and 2,290 during this publication. Nevertheless, the supply held by large wallets remained unchanged.
With these metrics, MATIC might not recover to uptrends soon. Nevertheless, reduced selling pressure might ensure a balanced status for the asset’s price.
Stay tuned for upcoming market developments.
Editorial credit: sdx15 / shutterstock.com
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