• Polygon [MATIC] saw strong gains on the price charts in mid-February, but since then, the market has reversed and those gains have been wiped out.
• The active addresses metric and daily gas fees have both declined over the past two weeks, leading to a hit to MATIC’s revenue.
• The Futures market is also showing strong bearish sentiment with the Open Interest rising alongside falling prices and a negative funding rate.
Overview of Polygon [MATIC]
Polygon [MATIC] noted strong gains on the price charts in mid-February, a development which highlighted that sentiment was positive towards the asset at that time. However, since then, the market has turned and those gains have been fully wiped out.
Factors Affecting MATIC Prices
The active addresses metric has fallen since late January while daily gas fees have also declined over the past two weeks. This hit to the protocol’s revenue could explain some of the losses MATIC has seen on the charts. On H4, there is bearish favor in terms of market structure with MACD under zero line indicating downward momentum until recently when it formed a bullish crossover. There are two lower timeframe levels of resistance and support at $1.18 and $1.09 respectively. Furthermore, there is a fair value gap (white box) in the $1.01-$1.06 area on D1 chart which signals further drops towards $1 psychological level if broken below $1.09 mark for aggressive traders to short revisit to $1.15-$1.18 zone..
Bullish or Bearish?
A move above $1.25 would be required to flip bias to bullish while Realistic or not, here’s MATIC’s market cap in BTC’s terms shows bearish sentiment as well with Open Interest rising alongside falling prices and a negative funding rate before flipping positive again recently before press time 12 hours ago .
Conclusion
In conclusion, based on current metrics such as MACD crossovers , lower timeframe levels , fair value gaps and futures markets sentiments , polygon [MATIC] appears bearish for now unless it breaks above 1.25 mark for bullish reversal .
Disclaimer
The information presented does not constitute financial, investment, trading or other types of advice and is solely opinion of writer .