polygonal (MATIC) It recently broke the crucial support level at $0.5 and is at risk of further price declines. This price drop is due to many traders dumping their tokens as soon as Polygon reached this support level amidst the downtrend in The broader cryptocurrency market.
Polygon is facing significant selling pressure.
Exchange-Onchain Market Depth Indicator on Market Intelligence Platform In the mass It appears that Polygon is currently facing High selling pressureOver 90 million tokens were sold after the coin hit $0.5. This indicator tracks the order books of the 20 largest exchanges and shows the average price at which traders are looking to buy and sell the token.
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Polygon bulls were unable to defend the crucial support level at $0.5 as further data from IntoTheBlock showed that just over 55 million tokens were bought at an average bid price of $0.49. Meanwhile, ribbed Gold is at risk of further price declines, as data from IntoTheBlock shows that sell orders continue to outpace buy orders.
The bright side of this wave of selling is that ribbed whales It seems they have maintained their faith in the MATIC token and are taking advantage of this price drop to accumulate more tokens. Data from IntoTheBlock shows that net inflows from large holders have increased by over 1,700% in the past seven days, indicating accumulation among these investors.
Only 3% of Polygon holders Investors who are currently losing money on MATIC may cut their losses at some point, which could lead to another wave of MATIC sell-offs. If the cryptocurrency doesn’t rise in value soon enough, the 96% of investors who are currently losing money may cut their losses at some point, which could lead to another wave of MATIC sell-offs.
Thanks to the bearish price action, Polygon recently dropped out of the top 20 crypto companies by market cap. Data CoinMarketCap data shows that it is currently the 21st largest cryptocurrency by market cap, behind Litecoin.
Market conditions are not making things any easier for MATIC.
the Current cases The broader cryptocurrency market has also been a contributor to Polygon’s recent decline. Bitcoin recently dropped to $63,500 from $69,000, taking it to $1,000. Alternative currencies The prices of some tokens like MATIC have fallen significantly due to their strong positive correlation with the price of Bitcoin.
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The leading cryptocurrency saw this price drop thanks to Escalating tensions In the Middle East, with Iran and Israel at the forefront. However, The market is expected to witness The price is expected to rise again soon, which means that tokens like MATIC could see a massive recovery sooner rather than later. The first target will be for the token to reclaim the crucial support level at $0.5.
At the time of writing, Polygon is trading at around $0.48, down almost 2% in the last 24 hours, according to Data From CoinMarketCap.
Featured image created using Dall.E, chart from Tradingview.com