Polygon (MATIC) price has fallen 17% over the past 30 days , and the asset’s current performance leaves much to be desired. Let’s find out whether MATIC still has a chance of recovery.
Investors are losing interest in Polygon
According to analytics platform Santiment, Polygon’s outlook remains bleak. One of the reasons is open interest (OI), which is the value of all outstanding contracts on the market. At the time of publication, it is only $38.85 million – the last time such values were seen was in June 2022 during the bear market.
Polygon’s Open Interest. Source: Santiment
However, If the trend continues, MATIC will face even greater losses. At press time, the altcoin is trading at $0.42, down 85.51% from its all-time high. While these situations typically represent a good buying opportunity, investors are hesitant to accumulate MATIC. However, according to IntoTheBlock, the number of holders who have held the coin for between 30 days and 12 months has dropped significantly. Short-term holders have also started to dump their tokens.
Polygon addresses by retention time. Source: IntoTheBlock
This means that market participants are skeptical about the potential for Polygon’s price recovery.
MATIC Price Forecast: New Decline on the Horizon
The daily chart of MATIC/USD shows that bulls have managed to recover some of their recent losses. However, the token faces serious challenges as its price remains below the important support at $0.46. Additionally, the Teapot Money Flow (CMF) index, used to differentiate between accumulation and distribution periods, has fallen to -0.12, hinting at sellers’ supremacy.
Polygon Daily Analysis. Source: TradingView
The Relative Strength Index (RSI), in turn, is still below the neutral level, indicating that the bearish trend will continue. If the situation does not change, MATIC could fall to $0.40. However, an increase in bullish sentiment in the broader market will give the altcoin a chance to recover to $0.50.
The post Polygon (MATIC) Open Interest Drops to Bear Market Levels: What’s Next first appeared on The VR Soldier.
