The entire crypto market suffered a massive dump on July 25. Consequently, the prices of some altcoins went into a downtrend. One of them is polygon [MATIC]with a decrease of 8.59% in the last 24 hours according to CoinMarketCap.

The Ethereum-based cryptocurrency was also down 19.83% in the past seven days. It was one of the top twenty cryptocurrencies with the most losses. At the time of writing, MATIC was down 73.90% from the all-time high (ATH) of $2.90.

Of Bitcoin [BTC] moving downward, most altcoins were expected to follow suit. Bitcoin, however, has fallen 3.58% over the past seven. So, how did MATIC underperform the crypto king?

High time perhaps?

Between July 14 and July 18, MATIC made significant gains. During this period, the price went from $0.54 to $0.92. So make reasonable profit for investors. The four-hour chart also showed that MATIC support subsequently increased around the same time. It rose from $0.54 to $0.75.

Current events may not be surprising as MATIC lost its support level – from $0.86 to $0.82 on July 22. Despite a recovery to $0.87, a price decline was imminent.

While the 20-period exponential moving average (EMA) (blue) had been above the 50 EMA (red) for some time, it could soon lose its dominance.

At the time of writing, the 50 EMA was about to rise above the 20 EMA. This condition may require MATIC investors to be alert. This is because a further downtrend could follow the 8% drop.

Source: TradingView

The position of the Relative Strength Index (RSI) may also appear to be in line with the EMA projections. At the time of writing, the RSI was below the mid-range at 43.69.

Source: TradingView

With this data, MATIC sellers are ahead and in control. It can be a good entry point for buyers. However, investors should be cautious as there are clear signs of further price decline.

On-chain stats

MATIC was also down in 24-hour volume in line with its price decline. At the time of going to press, it stated a reduction of 10.22%. Likewise, the 24-hour active addresses on the Polygon chain have shrunk since then. On July 25, there were 3,349, but at the time of writing there were 2,290.

However, the supply of whales remained the same.

Source: Santiment

As a result of these statistics, MATIC may not return to an uptrend anytime soon. However, if the selling pressure subsides, it could create a balanced condition for the MATIC price.

This post MATIC could create a balanced state when it comes to fruition

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