This, however, is not enough to counter the fact that the intense bearishness still influences price action.
Polygon Investors Hang Low
MATIC price has impacted the total transaction volume generated on the network. This has reached a significant low, mirroring levels seen in December 2023. Currently, the transaction volume stands at under $33 million, highlighting a considerable reduction in network activity.
This decline in transaction volume may reflect decreased user engagement or confidence in the network's performance.
In addition to the concerning transaction volume, MATIC is experiencing a unique challenge due to its low correlation with Bitcoin. If Bitcoin were to rise significantly, MATIC might not benefit from the same upward momentum. This disconnect could hinder MATIC's recovery efforts, leaving it less responsive to broader market gains driven by Bitcoin.
At the moment, the correlation is at a two-month low of 0.4, last seen in April this year. Overall, the combination of low transaction volume and the weak correlation with Bitcoin presents a challenging environment for MATIC.
While the network grapples with reduced activity, the lack of alignment with Bitcoin's price movements could complicate efforts to regain lost ground. Investors and stakeholders must closely monitor these dynamics as they navigate the uncertain landscape ahead.
MATIC Price Prediction: Another Decline Ahead
MATIC's price broke below the consolidation between $0.75 and $0.64 over the past ten days. As a result, the altcoin can be seen changing hands at $0.62 at the time of writing. Despite the presence of green candlesticks over the past two days, the Polygon native token is bound for a decline.
The aforementioned cues could send the altcoin falling below $0.60 again, potentially falling to $0.53.
However, should MATIC's price manage to secure $0.60 as a support floor and reenter consolidation above $0.64, the altcoin has a shot at recovery. This would invalidate the bearish cues as well.
Disclaimer
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