Polygon hits 24-month low amid softening market activity
Analyze prices and current status
- After consolidating from April 14 to June 7, Polygon (MATIC) broke below the lower boundary of the horizontal channel and has since fallen 33%. As of now, MATIC is trading at $0.44, a level not seen since July 2022.
On-chain analytics and #marketsentiment
- Analysis of MATIC's on-chain data shows a sharp drop in demand for the token. Daily Active Address-Price Divergence (DAA), which compares an asset's price movements with changes in its daily active address, currently shows a negative value of -35.59%. This shows a significant decrease in the number of daily active addresses, signaling a #BEARISH📉 outlook for the token. The last time this metric was positive was on October 24, 2023.
- Relative Strength Index (RSI) and market conditions
MATIC's relative strength index (RSI) stands at 21.17, suggesting the asset is oversold and could be on the verge of a recovery. The RSI ranges from 0 to 100, with values below 30 indicating oversold conditions. Even so, the prevailing bearish sentiment could limit any potential price recovery.
Price prediction and market outlook
- The bearish trend continues to be supported by the Elder-Ray Index, which has been negative since the sale began on June 7. This indicator measures the balance of power between buyers and sellers and a negative value of -0.15 indicates a bearish advantage.
- If the bearish trend continues, MATIC price could drop to $0.42. Conversely, if buying pressure increases and traders take advantage of the dip, the price could recover to around $0.49.
Source - beincrypto.com
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