💥💥 Polygon (MATIC) price has been forming lower lows, which took a pause over the last 48 hours.

This, however, is not enough to counter the fact that the intense bearishness still influences price action.

MATIC price has impacted the total transaction volume generated on the network. This has reached a significant low, mirroring levels seen in December 2023. Currently, the transaction volume stands at under $33 million, highlighting a considerable reduction in network activity.

This decline in transaction volume may reflect decreased user engagement or confidence in the network’s performance. 

In addition to the concerning transaction volume, MATIC is experiencing a unique challenge due to its low correlation with Bitcoin. If Bitcoin were to rise significantly, MATIC might not benefit from the same upward momentum. This disconnect could hinder MATIC’s recovery efforts, leaving it less responsive to broader market gains driven by Bitcoin.

At the moment, the correlation is at a two month low of 0.4, last seen in April this year. Overall, the combination of low transaction volume and the weak correlation with Bitcoin presents a challenging environment for MATIC.