Market Conditions and Impact on Altcoins
For investors, market conditions began to deteriorate in the crypto market starting March 20. Since that date, altcoins have experienced significant declines, with losses exceeding 20%, demoralizing altcoin investors. The main issue dampening risk appetite is that Bitcoin (BTC) failed to make a substantial leap despite dropping below $58,000.
Predictions for Polygon (MATIC)
As BTC continues to increase by 1.6% today, Polygon (MATIC) has fallen to $0.66. Even though the total 24-hour trading volume has nearly doubled, it remains under $100 billion. The weakening risk appetite for altcoins could lead to MATIC Coin forming deeper bottoms, a trend that has been losing interest for a long time.
After a 13% drop in April, MATIC Coin bulls are not eager to recover from support. The steady decline in demand has been clearly visible for weeks. Considering the 30-day moving average, the number of daily active addresses has been on a downward trend since April 20.
Decline in Network Activity
In May, the decline in active addresses reached 16%. Network growth data confirms this. Between April 20 and May 12, MATIC growth weakened by 15%. These negative indicators in new demand explain why the price has been so frustrating.
When an asset’s network activity decreases like this, it means fewer market participants are buying and selling the asset.
MATIC Coin Forecast
As of the time this article was prepared, the MATIC Coin Relative Strength Index (RSI) is below the neutral line of 50.0. An RSI above 70 indicates strong demand (overbought), while below 30 indicates overselling. The RSI of MATIC is at 39 and on a downward trend, confirming the lack of buyers noted earlier. Combining this environment where sellers are pressuring buyers with the negativity in the BTC price does not create a positive outlook for MATIC Coin.
If the altcoin, finding buyers at an important support level, drops below $0.65, it could form a deeper consolidation zone. At this stage, the second target will be $0.62. The price, at the time this article was prepared, is just above the first support at $0.66. Closures above $0.68 must be seen for a turnaround.
