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.

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.