On July 11, MATIC's trading volume suddenly increased to 103 million USD, a significant increase from only 6.45 million USD the previous day. Despite this spike in trading volume, MATIC's price continues to decline.
The current negative market sentiment, as indicated by the Elder-Ray index, suggests that MATIC's price could decline to $0.42 unless there is a positive change in the market situation.
Trading volume increased
According to data from IntoTheBlock, MATIC’s large trading volume spiked to $103 million on July 11, up 1,493% from $6.45 million the day before. These large trades are typically made by institutional investors, which can impact the price of the asset.
Despite the sharp increase in trading volume, MATIC’s price has not responded positively. Currently, the altcoin is trading at $0.49, down 4% over the past 24 hours, despite a more than 10% increase in trading volume.
This difference is called bearish divergence, which occurs when the price of an asset falls despite increased trading volume. This shows that strong selling pressure is pushing the price down, reflecting negative sentiment towards the asset. If this trend continues, the price can be expected to continue falling.
MATIC Price Signal
MATIC’s Elder-Ray indicator is currently negative, indicating negative market sentiment. It is currently at -0.03 million, indicating that bears are dominating the market.
The Elder-Ray index measures the balance between buyers and sellers. A negative value indicates that the bears are gaining strength, which could push the price of MATIC further down. If this negative trend continues, the price of MATIC could fall to $0.42. Conversely, a positive change in market sentiment could push the price of the token up to $0.50.