Traders and Investors Stick to Polygon [MATIC] may have seen a 10% price increase in the last 24 hours. By doing this, they can assume that a bullish run was underway. Unfortunately, they would be wrong.
With an index price of $0.3637, the crypto has fallen back to its April 2021 level. With the MACD poised for a bearish run, the three-month price drop could be far from over.
A story of 80 days…
Before the plague hit, MATIC started the month with an index price of $1.62. In the past 80 days, the altcoin has lost 77% of its value to mark a spot at $0.372.
In the last 24 hours, the price of the alt has increased by 10%. Within the 80-day period, the market cap also fell from $12.45 billion to $2.98 billion, at the time of writing.
The Relative Strength Index (RSI) and Money Flow Index (MFI) struggle to keep the bears at bay and have been below 50 for three months. Within that period, the RSI fell to 22 on May 12. The MFI also reached a low of April 13 to 11. At the time of going to press, the RSI and MFI were deeply oversold at 31 and 18, respectively.
While MATIC’s latest rise in price may give investors a false sense of recovery, it is trite to point out that recovery is far from in sight. Looking at the 50 EMA, the EMA line rested comfortably above the price.
This points to a bearish bias. The MACD line on June 12, implying a renewed bear run, crossed the trendline in a downward curve.
The position of the exchange rate balance value for MATIC lent its bearish outlook. At -13.74 million at the time of writing, a price decline seemed imminent.
Analysis on the chain
A review of MATIC’s on-chain performance over the past three months revealed a decline in the number of new addresses created on the network every day.
After a record 3,357 on May 12, the network’s growth took a downward trend. At the time of writing, it had registered a 50% drop to be linked to 1,672 new addresses.
The altcoin’s whale accumulation has begun a steady decline since mid-May. After a total tally of 1,079 transactions between May 10 and 13, the number of whale transactions exceeding $100k has taken a dent since then.
Since May 13, a decrease of 62% has been registered. Transactions over $1 million are down 88% since the May 13 high.
In addition, active deposits on the network have fallen steadily since May 11 from a high of 661.
So far, the Polygon Network has introduced some updates to its ecosystem this year. These updates include the Green Manifesto and the carbon neutral project. However, if prices continue to fall, the network needs to do more to keep its investors.
This post MATIC’s Last 80 Days Have This To Say About Crypto’s Fortunes
was published first on https://ambcrypto.com/matics-last-80-days-have-this-to-say-about-the-cryptos-fortunes/