The News Crypto –
- Polygon’s MATIC to POL migration accomplished, however consumer exercise and value stay weak.
- POL is down in 24 hours regardless of 925% quantity enhance.
- Technical indicators counsel potential for additional decline, with $0.35 as bearish goal and $0.55 as bullish goal.
Polygon’s current migration from its native token MATIC to POL, accomplished on September 4, has failed to spark the constructive market response usually related to such upgrades.
As a substitute, the community faces a sequence of challenges, together with declining consumer exercise and enormous holders offloading their tokens, which proceed to exert downward strain on the newly minted POL’s value.
The 1:1 migration of MATIC to POL, now serving as Polygon’s gasoline and staking token, has been met with a muted market response. POL at present trades at $0.36, recording a 4% decline over the previous 24 hours.
Paradoxically, this value drop has been accompanied by a staggering 925% surge in buying and selling quantity, a phenomenon typically indicative of panic promoting and heightened market uncertainty.
Supply: Santiment
Polygon market faces promoting strain
This disconnect between value and quantity suggests a market dominated by promoting strain, doubtlessly pushed by worry and uncertainty surrounding the token improve or broader market traits.
The scenario has compelled many POL holders to liquidate their positions at a loss, as evidenced by the token’s ratio of every day transaction quantity in revenue to loss. Presently standing at 0.51, this metric signifies that for each worthwhile transaction, 1.96 transactions are leading to losses.
Technical evaluation of POL’s 12-hour chart paints a regarding image for short-term value prospects. The Transferring Common Convergence/Divergence (MACD) indicator exhibits the MACD line resting under each its sign and 0 traces, a configuration usually interpreted as a powerful bearish sign. This setup typically prompts merchants to exit lengthy positions and take into account quick entries.
Nevertheless, amidst these bearish alerts, a glimmer of hope emerges from POL’s Relative Energy Index (RSI). Presently registering a worth of 28.67, the RSI means that POL could also be getting into oversold territory.