The News Crypto -
- Polygon’s MATIC to POL migration completed, but user activity and price remain weak.
- POL is down in 24 hours despite 925% volume increase.
- Technical indicators suggest potential for further decline, with $0.35 as bearish target and $0.55 as bullish target.
Polygon’s recent migration from its native token MATIC to POL, completed on September 4, has failed to spark the positive market response typically associated with such upgrades.
Instead, the network faces a series of challenges, including declining user activity and large holders offloading their tokens, which continue to exert downward pressure on the newly minted POL’s price.
The 1:1 migration of MATIC to POL, now serving as Polygon’s gas and staking token, has been met with a muted market reaction. POL currently trades at $0.36, recording a 4% decline over the past 24 hours.
Paradoxically, this price drop has been accompanied by a staggering 925% surge in trading volume, a phenomenon often indicative of panic selling and heightened market uncertainty.
Source: Santiment
Polygon market faces selling pressure
This disconnect between price and volume suggests a market dominated by selling pressure, potentially driven by fear and uncertainty surrounding the token upgrade or broader market trends.
The situation has forced many POL holders to liquidate their positions at a loss, as evidenced by the token’s ratio of daily transaction volume in profit to loss. Currently standing at 0.51, this metric indicates that for every profitable transaction, 1.96 transactions are resulting in losses.
Technical analysis of POL’s 12-hour chart paints a concerning picture for short-term price prospects. The Moving Average Convergence/Divergence (MACD) indicator shows the MACD line resting below both its signal and zero lines, a configuration typically interpreted as a strong bearish signal. This setup often prompts traders to exit long positions and consider short entries.
However, amidst these bearish signals, a glimmer of hope emerges from POL’s Relative Strength Index (RSI). Currently registering a value of 28.67, the RSI suggests that POL may be entering oversold territory.
This content was originally published on The News Crypto
