Polygon’s native token, MATIC, is gaining attention after hitting a nine-month low. As expected, this has caused some concern among investors. However, despite the bearish sentiment, the Moving Average Convergence Divergence (MACD) indicator suggests that a bullish reversal may be imminent.
At the time of writing, the MACD line is fluctuating just below the Signal line, suggesting that the downward momentum is weakening.
Source: TradingView
However, MATIC price is below both the 50 and 200 period MA lines – A sign of a short-term downtrend.
The consolidation around current price levels coupled with the creation of a bullish cross in the MACD suggests that buyers may be slowly regaining strength. This could be the key to regenerating the altcoin’s bullish momentum.
Bears are still present in the market
The majority (92.91%) of MATIC addresses are currently “at a loss,” meaning their holdings are now worth less than their original purchase price. On the contrary, only a small part (5.22%) is “profit”.
Source: IntoTheBlock
The volume of inflows into exchanges also recorded a significant increase – Usually this is a sign of selling pressure as investors transfer their tokens to the exchange, possibly for sale.
However, the slope of net inflows (blue line) is flattening, signaling that selling pressure may be decreasing on the chart.
Source: IntoTheBlock
The NVT (Network Value to Transactions) ratio shows some fluctuation, but it is trending downward. This implies that trading volume is increasing. This can be considered a positive sign if this increase in trading volume is maintained.
Source: IntoTheBlock
Finally, whales seem to have left the market as there are fewer speculative trades with large volumes. This should reduce volatility in the short term.
For a bullish reversal to occur, market sentiment needs a strong bullish stimulus, which could be related to the network or broader economic trends.
You can see MATIC prices here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
SN_Nour
According to Ambcrypto
