For investors, things started to deteriorate in the crypto market from March 20, and altcoins have significantly dropped since that date. Losses exceeding 20% have demoralized altcoin investors. The main issue dampening risk appetite is that BTC failed to make a real leap despite dropping below $58,000. What are the predictions for Polygon (MATIC)?
Polygon (MATIC)
BTC is continuing the day with a 1.6% increase, while MATIC Coin has fallen to $0.66. Even though the total 24-hour trading volume has nearly doubled, it remains under $100 billion. The weakening risk appetite for altcoins could lead to MATIC Coin forming deeper bottoms, a trend that has been losing interest for a long time.
After a 13% drop in April, MATIC Coin bulls are not eager to recover from support. The steady decline in demand has been clearly visible for weeks. When considering the 30-day moving average, the number of daily active addresses has been on a downward trend since April 20.
In May, the decline in active addresses reached 16%. Network growth data confirms this. Between April 20 and May 12, MATIC growth weakened by 15%. These negative indicators in new demand explain why the price has been so frustrating.
When a asset’s network activity decreases like this, it means fewer market participants are buying and selling the asset.
MATIC Coin Forecast
As of the time this article was prepared, the MATIC Coin RSI is below the neutral line of 50.0. An RSI above 70 indicates strong demand (overbought), while below 30 indicates overselling. The RSI of MATIC is at 39 and on a downward trend, confirming once again the lack of buyers noted earlier. Combining this environment where sellers are pressuring buyers with the negativity in the BTC price does not create a good picture for MATIC Coin.
Now, if the altcoin, finding buyers at an important support level, drops below $0.65, it could form a deeper consolidation zone. At this stage, the second target will be $0.62. The price, at the time this article was prepared, is just above the first support at $0.66. Closures above $0.68 must be seen for a turnaround.
