Merchants and traders holding on to Polygon [MATIC] might have noticed a ten% uptick in worth during the last 24 hours. In doing so, they could have assumed {that a} bullish run was underway. Sadly, they might be unsuitable.
With an index worth of $0.3637, the crypto has dropped again to its April 2021 ranges. With the MACD poised for a bearish run, the three month-long decline in worth is likely to be removed from over.
A story of 80 days…
Earlier than the plague hit, MATIC began the month at an index worth of $1.62. During the last 80 days, the altcoin has misplaced 77% of its worth to mark a spot at $0.372.
During the last 24 hours, the alt’s worth registered a ten% uptick. Throughout the 80-day interval, the market capitalization additionally declined from $12.45 billion to $2.98 billion, on the time of writing.
Struggling to maintain the bears at bay, the Relative Power Index (RSI) and the Cash Movement Index (MFI) have been stationed under 50 for 3 months. Inside that interval, the RSI went as little as 22 on 12 Could. The MFI additionally touched a low of 13 on 11 April. At press time, the RSI and MFI have been deeply oversold at 31 and 18, respectively.
Whereas the most recent uptick within the worth of MATIC would possibly give traders a false sense of restoration, it’s trite to level out that restoration remains to be removed from sight. Wanting on the 50 EMA confirmed the EMA line resting comfortably above the worth.
That is indicative of a bearish bias. Additionally, implying a renewed bear run, the MACD line on 12 June intersected the trendline in a downward curve.
The place of the change circulation stability metric for MATIC lent credence to its bearish outlook. With a studying of -13.74 million at press time, a worth drop down appeared imminent.
On-chain evaluation
A evaluate of MATIC’s on-chain efficiency during the last three months revealed a decline within the variety of new addresses created on the community every day.
After registering a excessive of 3357 on 12 Could, the community’s progress took on a downtrend. On the time of writing, it had recorded a 50% drop to be pegged at 1,672 new addresses.
Whale accumulation of the altcoin has launched into a gradual decline since mid-Could. After recording a complete rely of 1,079 transactions between 10 and 13 of Could, the rely for whale transactions above $100k has since taken a beating.
Since 13 Could, a 62% decline has been registered. For transactions above $1 million, an 88% drop in rely has been recorded because the excessive on 13 Could.
Along with this, lively deposits on the community have dropped steadily since 11 Could after a excessive of 661.
Up to now this yr, the Polygon Community has launched some updates to its ecosystem. These updates embrace the Green Manifesto and its Carbon Neutral project. Nevertheless, with a sustained decline in worth, extra must be achieved by the community with a view to retain its traders.