Bearish Trend Threatens Polygon (MATIC) Amid Negative MVRV Ratio
The Bottom Line
The cryptocurrency Polygon (MATIC) is showing signs of impending selling pressure. With a significantly negative MVRV ratio and an increase in inactive circulation, the signs are stormy. This could prompt short-term buyers to sell at any possible recovery to minimize their losses, making a recovery more difficult.
Polygon in the Bear Market: A Technical Analysis
The price of Polygon (MATIC) has shown a clear downward trend in June, starting with a drop below the 2-month range on June 11. The subsequent confirmation of the resistance level at $0.621 has solidified the bears’ position and paved the way for further losses. Currently, the resistance level at $0.59 is in focus, while the psychologically important support level at $0.5 is the next target. This level has been crucial in the past and could at least temporarily halt the downward trend.
Indicators Suggest Further Selling Pressure
The Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) underscore the bearish market structure. A CMF value below -0.05 would signal a strong capital outflow from the market, while an RSI value of 33 confirms the current downward trend. An increase in inactive circulation on June 24 suggests that another wave of selling could be imminent, similar to the situation in mid-April when the price tested the $0.6 mark several times.
The Role of the MVRV Ratio
A deeply negative MVRV ratio indicates that short-term buyers are currently suffering losses. This increases the likelihood that any price increases will be used by these traders to offset their positions, making a sustainable recovery more difficult. The market structure and current indicators suggest that a defensive stance towards the $0.5 support level may not be enough to reverse the trend.
Click here to follow our Telegram channel.
Our Assessment
The current signals in the Polygon market point to a continuation of the downward trend. Investors and traders should prepare for further losses and keep an eye on the mentioned technical levels. In particular, the MVRV ratio and inactive circulation provide important points of reference for short-term market development. A cautious approach and observation of further market signals are advisable in the current situation.
Sources: AMBCrypto, Santiment
You should read that too:
| Wagering requirements | 35x bonus |
| 35x free spins winnings | |
| Minimum deposit | €20 |
| Maximum bet | €5 |
| Bonus validity | 30 days to claim |
| 14 days to wager / 7 days for free spins |
- There is no maximum bonus amount.
- 10 Free Spins per day over ten (10) days on Gates of Olympus or Book of Ra Deluxe.
| Wagering requirements | 40x bonus |
| 40x free spins winnings | |
| Minimum deposit | 0.0005 BTC |
| Maximum bet | 0.00004 BTC |
| Bonus validity | 30 days after registration |
| 14 days (1st), 7 days (2nd), 1 day (3rd) |
- To get the bonus, enter the bonus code before the deposit.
- Minimum deposit: 0,07 BCH • 0,4 LTC • 233 DOG • 45 XRP • 0,01 ETH • 20 USDT • 69 ADA • 0,05 BNB • 184 TRX • 20 USDC.
- Maximum bet: 0.007 BCH • 0.0009 ETH • 0.04 LTC • 23 DOGE • 2 USDT • 4 XRP • 18 TRX • 7 ADA • 0.005 BNB • 2 USDC • 2 EUR • 2 USD.
- Free spins are provided in batches of 25 per day.
- Free spins are credited on the Gamebeat slots: Max Miner (1st), Book of Elixir (2nd) and Odin’s Tree (3rd).
| Wagering requirements | 40x bonus |
| Minimum deposit | 0,1 mBTC |
| Maximum bet | $5 per spin |
| Bonus validity | 7 days to wager |
- There is no cap on winnings or withdrawals.
Advertising transparency