On July 11, MATIC’s transaction volume surged to $103 million, a substantial rise from the previous day’s $6.45 million. Despite this increase in large transaction volumes, the token’s price has continued to decline.

The bearish market sentiment, as indicated by the Elder-Ray Index, suggests that MATIC’s price could fall to $0.42 unless there is a positive change in sentiment.

MATIC’s Large Transaction Volume Surges, Price Declines

According to IntoTheBlock data, on July 11, MATIC’s large transaction volume surged to $103 million, marking a 1,493.81% increase from the previous day’s $6.45 million. Large transactions, defined as those over $100,000, often indicate heightened activity among institutional investors, potentially impacting the asset’s price.

Polygon Large Transactions Volume. Source: IntoTheBlock

Despite this surge in transaction volume, MATIC’s price has not reacted positively. At press time, the altcoin is trading at $0.49, with a 4% drop in price over the past 24 hours, even as trading volume increased by over 10%.

This discrepancy, known as a bearish divergence, occurs when an asset’s price falls despite rising trading volume. It suggests that strong selling pressure is driving the price down, reflecting negative sentiment towards the asset. If this trend continues, further price declines could be expected.

MATIC Faces Downward Pressure as Elder-Ray Index Signals Bearish Sentiment

The current negative values of MATIC’s Elder-Ray Index reflect prevailing bearish market sentiment. As of this writing, the index shows a value of -0.03 million, indicating that selling pressure is currently dominating the market.

Polygon Analysis. Source: TradingView

The Elder-Ray Index measures the balance between buyers and sellers. A negative value suggests that bear power is stronger, which could push MATIC’s price lower. If this bearish trend continues, MATIC’s price may drop to $0.42. Conversely, a positive shift in market sentiment could potentially see the token’s price rise to $0.50.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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