MATIC Price Decline Despite Polygon 2.0 Upgrade
MATIC, the native cryptocurrency of Polygon, has experienced a persistent bearish trend despite the much-anticipated Polygon 2.0 upgrade. This decline can be attributed to profit-taking activities by investors and hesitancy among derivative investors.
Factors Contributing to MATIC’s Price Decline
- Falling market cap and trading volume indicate waning investor confidence in MATIC’s current price.
- Overbought conditions and lack of buying activity may lead to further MATIC price decline.
- The Polygon market witnessed adverse sentiment, with prices dropping to an intraday low of $0.5458 despite the launch of the Polygon 2.0 upgrade.
- MATIC was trading at $0.5543 at press time, down 1.44% from its intraday high. Profit-taking and investor expectations for a price increase due to the upgrade could be contributing factors.
- Polygon’s Binance Funding Rate turned red, indicating hesitation among derivatives investors to purchase MATIC at its present price.
- Increasing Exchange Reserve suggests significant selling pressure as more investors deposit MATIC tokens into exchanges, indicating a willingness to sell.
- MATIC’s market cap and 24-hour trading volume declined to $5,154,422,539 and $243,978,139, respectively, reflecting lost investor faith and slowed trading activity.
MATIC/USD Technical Analysis
On the MATIC/USD price chart, the Bollinger bands are indicating a possible negative trend with the upper, middle, and lower bands touching $0.567, $0.555, and $0.543, respectively. This downward movement suggests selling pressure and a lack of buyer interest, potentially leading to further decline in investor confidence and trading activity for MATIC.
With a stochastic RSI of 88.01, MATIC’s price may continue to fall soon. This high rating indicates that the asset is overbought and due for a correction, potentially resulting in more selling pressure and a price reduction.
Furthermore, the current lack of purchasing activity indicates investor caution, compounding the negative trend for MATIC. In conclusion, despite the Polygon 2.0 upgrade, MATIC faces bearish sentiment, with declining prices and overbought conditions, raising concerns for its short-term prospects.