Polygon is struggling in an environment where 81.60% of POL holders are currently losing money and the overall sentiment is bearish, according to current market dynamics and on-chain data. Negative market trends have further exacerbated the situation, with POL losing more than 5% in value in the past 24 hours.$POL
According to a COINOTAG source, such market conditions usually show increased selling pressure, indicating the possibility of further declines in the market. Polygon is at a critical threshold where market momentum needs to recover in this bear market, where 81.60% of its investors have suffered losses.
Polygon’s Price Status
IntoTheBlock’s “In/Out of the Money” metric shows that a large portion of Polygon investors are currently losing money. This coincides with Polygon’s ongoing price decline throughout 2024 and reflects the declines in the overall crypto market. Current market conditions are fueling panic selling while also providing opportunities for some investors to buy at discounted prices. Historically, such losses can signal market bottoms and signal a future recovery.
Technical analysis via TradingView paints a mixed picture in the market around POL. While the 50-day Moving Average (MA) has crossed above the 200-day MA, signaling a potential bullish crossover, POL’s trading price remains below these levels. This suggests that there is still a serious fight for the upside. Furthermore, the MACD indicator is showing signs of weakening bullish momentum, while the histogram also points to a possible reversal in the trend. The Relative Strength Index (RSI) is fluctuating at a neutral level around 59, indicating continued consolidation. In order for POL to regain investor confidence, it needs to stay above the $0.50 and $0.55 levels and generate strong trading volume.
Santiment’s network growth data shows that interactions in the Polygon ecosystem are volatile. While the recent increase in network activity suggests short-term interest, a downward trend has been observed since early November. This is related to the decrease in participation from users and developers. Network activity is critical to POL’s recovery; strong network interactions and ecosystem development can be instrumental in restoring investor confidence.
As things stand, Polygon’s market is going through a tough time, with 81.60% of POL holders at a loss. While market sentiment is currently pessimistic, such conditions can sometimes present opportunities for forward-thinking investors. POL’s future will depend on its ability to reach decisive technical levels and revive the network’s growth. Current market data suggests a cautious approach, but if broader market conditions improve, there is potential for a recovery.
Market participants should be cautious and the decisions taken may have significant impacts on the future performance of their portfolio. You can use the POL Profit Earnings Calculator to evaluate your portfolio and develop strategies for the future.