MATIC’s price action is concerning: Are bulls losing control?

• MATIC showed bearish signs with a decrease in price and trading activity.
• Despite network upgrades like Polygon 2.0, MATIC faced declines with a key support at $0.68.

The cryptocurrency market has corrected a bit, and Polygon [MATIC] is no exception. Per the current price action, MATIC bulls seemed to be struggling to maintain their momentum.

With a 1% decrease in price over the past 24 hours and a noticeable slowdown in trading activity, the sentiment around MATIC appears to be turning bearish. Are the bears back?

MATIC turns bearish

MATIC’s performance has shown clear signs of deceleration, marked by a simultaneous dip in both price and NVT ratio.

Typically, an NVT ratio downturn suggests undervaluation, but given the concurrent price fall, it would also mean a bearish sentiment is taking hold among traders.

Source: Santiment

Turning our attention to MATIC’s social volume, we see a similar trend. There is a clear divergence between its price trajectory and the social volume — they’re both tumbling. 

The pronounced spikes in social volume in early February and mid-April, which closely align with price peaks, are absent in recent weeks, paralleling a more subdued price action.

Source: Santiment

Recently, MATIC tested the MA200 as a resistance point but failed to sustain above it, indicating a bearish sentiment.

The RSI is currently near the midpoint at 51.59, suggesting a balance between buying and selling pressures without clear directional strength.

Should MATIC’s price drop below the $0.70 level, the next key support is likely near the $0.68 mark, a previous low from the consolidation phase earlier in the month.

Conversely, the resistance level is firmly established by the MA200 at approximately $0.7333.

A decisive break above this line could push MATIC towards the next resistance at around $0.74, followed by $0.78, which are recent highs before the price retracted.

Source: TradingView

What’s been going on with Polygon?

Beyond price and trading volumes, it’s important to consider Polygon’s network activity.

Recently, the team unveiled Polygon 2.0 and the Polygon Improvement Proposals (PIPs). These proposals include the transition to a new token, POL.

Read Polygon [MATIC] Price Prediction 2024-2025

This token would enable a one-to-one migration from MATIC with a new emission mechanism.

The potential impact of these upgrades on Polygon’s network activity and MATIC’s price action will depend heavily on community participation and the successful implementation of the proposals.