Polygon (MATIC) Struggles to Keep Up with the Bullish Momentum in the Crypto Market
While the crypto market is experiencing a spectacular rebound, Polygon (MATIC) seems to be lagging behind. Despite its established position in the top 20, the native token of the layer 2 blockchain faces challenges that hinder its progression.
![La crypto de Polygon reste baissiere](https://www.cointribune.com/app/uploads/2024/07/crypto-matic-1024x683.png)
A mixed performance for MATIC
Last week was mixed for Polygon. On July 16, MATIC briefly reached $0.55, without being able to sustainably cross this threshold. The price then fell back to $0.52 before stabilizing around $0.5451. This volatility contrasts with the upward trend observed in other altcoins.
The Global In/Out of the Money indicator (GIOM) reveals a worrying situation for investors. Until July 9, no holder of the native Polygon crypto was in positive territory. Despite a slight rebound, only 5% of investors, those who bought between $0.0032 and $0.52 are currently profitable.
This stagnation comes after a record performance in March, followed by a sharp drop to $0.48 last week. Such a decline raises questions about MATIC’s ability to rebound in the current context.
Uncertain prospects for Polygon
Technical analysis does not predict an immediate improvement for MATIC. On July 5, the price tested historical support at $0.47, before climbing back to $0.54 a week later. However, the Money Flow Index (MFI) indicates a lack of liquidity directed towards MATIC, making a short-term breakthrough of $0.57 unlikely.
The MFI, which measures capital inflows and outflows, remains below its neutral line. This weakness suggests a waning interest from buyers for MATIC. If this trend continues, the price could fall back below $0.50 or even retest the support at $0.47.
Nevertheless, a close above $0.53 would invalidate this bearish scenario and could propel MATIC towards $0.64. In the face of these challenges, Polygon will need to redouble its efforts to convince investors and regain positive momentum in an overall euphoric crypto market.
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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.