Polygon MATIC Experiences Significant Price Decline After Reaching Peak

Polygon MATIC Experiences Significant Price Decline After Reaching Peak

The price of Polygon MATIC, the token powering Polygon’s leading Layer-2 ecosystem, has seen a significant drop from its peak of $1.22 on March 14. After a period of consolidation between April 14 and June 7, the price fell below the lower boundary of its horizontal channel, leading to a 33% decrease.

Polygon MATIC Price Decline

An on-chain analysis reveals that the drop in MATIC’s price is tied to a notable decline in demand for the altcoin among market participants. This conclusion is supported by the Price-Daily Active Addresses (DAA) Divergence metric, which compares an asset’s price movements with the changes in the number of daily active addresses.

MATIC’s Price-DAA data shows a negative value of -35.59%, starkly contrasting to its last positive reading on October 24, 2023. When the Price-DAA Divergence value is below zero, it indicates a reduction in the number of daily active addresses trading the asset.

A value of -35.59% highlights a significant drop in active addresses, signaling a bearish trend for MATIC. This decrease in both the token’s price and network activity on Polygon suggests diminishing interest and engagement from traders.


Adding to this bearish outlook, MATIC’s Relative Strength Index (RSI) is at 21.17. The RSI measures an asset’s overbought and oversold conditions on a scale from 0 to 100, where values above 70 suggest overbought conditions and potential for a price correction, and values below 30 indicate oversold conditions and potential for a recovery. Although MATIC’s RSI suggests it could be ready for a price increase, the prevailing bearish trend may impede any potential rebound.

Chart Analysis, A Bearish Outlook

The bearish momentum for MATIC shows no signs of slowing. According to the Elder-Ray Index, which measures the strength of buyers versus sellers in the market, MATIC has been under bearish control since June 7. The current Elder-Ray Index value is -0.15, indicating that seller strength is dominating the market.

If bears continue to exert control, MATIC’s price could plummet further, potentially reaching as low as $0.42. However, if investors seize the opportunity presented by the price decline, increased buying pressure could drive MATIC’s price up to $0.49.

MATIC’s recent price decline is driven by decreased market demand and activity, as indicated by on-chain metrics and technical indicators. While there are signals of potential recovery, the current bearish trend presents significant challenges for the token’s price trajectory.


To conclude, Polygon MATIC faces significant bearish pressure due to decreased market demand and reduced network activity. Despite technical indicators hinting at potential recovery, the persistent negative trends pose substantial challenges. Investors should remain cautious, as the token’s price trajectory remains uncertain in the near term.

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