MATIC Price Crash: Reaching A Two Year Low

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As a crypto investor with some experience under my belt, I’ve seen my fair share of market crashes and recoveries. The recent crypto market crash has been particularly brutal, with $260 Billion wiped off the market cap in just two days. And for investors like me who have positions in cryptocurrencies like Polygon (MATIC), the losses have been significant.

Over the past two days, investors have faced challenging times as the crypto market slump caused a $260 billion reduction in the total market capitalization. According to Coinglass data, approximately 230,000 traders experienced losses of around $662.9 million during the previous 24 hours. Among these losses, long-position crypto investors suffered a significant hit with over $565.08 million in liquidation. The overall market downturn has resulted in substantial losses for investors as cryptocurrencies reached new lows. One of the hardest hit cryptocurrencies is Polygon (MATIC), which saw its price plummet to a two-year minimum after experiencing a 20% decline over the last week.

MATIC Price Maintains Loss Throughout The Year

Although Polygon is one of the widely used blockchain networks, its market standing has been on a downtrend since the previous year. Previously, during the market slump last year, Polygon gained popularity. However, with the market’s bullish condition this year, other cryptocurrencies have surpassed it, thereby restricting the growth of MATIC‘s price.

MATIC Price Crash: Reaching A Two Year Low

The price charts for MATIC demonstrate a consistent downtrend over both daily and yearly timeframes. The most significant loss occurred within the past 24 hours, with a steep drop of 11%. Conversely, over the course of a year, MATIC has experienced a more substantial decline of approximately 33%. Currently, it is priced at $0.4565, marking a two-year low, despite having reached a high of $1.2714 in March.

The decrease in value can be attributed to the significant shift in the number of daily active addresses on the network. The token’s Price-Daily Active Addresses (DAA) Divergence return, currently at -35.59%, underscores this trend as a major factor leading to the price drop. This negative value had last dipped below zero on October 24, 2023, following which there was an upswing in the network activity and subsequent price increase.

The MATIC Price Might Continue To Drop

As a crypto investor, based on the insights I’ve gathered from several reputable crypto analysts, it seems that the MATIC price is only at the beginning of its downturn. I personally anticipate a potential decrease of around 15-20% in the near term.

#MATIC Weekly Chart Update
Matic’s price peaked at $1.29 in March 2024 before beginning a prolonged decline, lasting approximately 112 days. Given the current market conditions, it seems plausible that Matic could experience a further decrease of around 15% to 20% from its current market price.
The lower support ranging between $0.316 and…
— Cryptorphic (@Cryptorphic1) July 5, 2024

Based on the technical analysis, the altcoin’s selling zone seems robust based on several indicators. The MACD (12,26) line has a value of -0.0357, while Momentum (10) stands at -0.1084, suggesting strong selling pressure. Additionally, moving averages from 5 to 200 periods indicate selling zones. However, the Williams Percent Range (14) is showing a buy signal, indicating potential overselling and an imminent reversal trend. The Relative Strength Index (RSI), at 25.0396, remains neutral, signifying continuation of the current trend.

To round up, the MATIC price has surpassed its second support level of $0.4656 and is now heading towards the next one at $0.3788. However, if it cannot rebound from this level, the downtrend may persist.

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2024-07-05 19:02