- Sentiment around MATIC turned negative in the last few days.
- A few market indicators turned bearish as well.
Polygon [MATIC] has finally managed to push its price above the $1 mark after being under that for several months.
So, AMBCrypto planned to check its current state to better understand whether MATIC can manage to stay above $1 in March.
What is MATIC up to?
MATIC’s value surged by more than 10% in the last seven days, hitting the $1 mark and igniting hopes of a bull rally.
According to CoinMarketCap, at the time of writing, MATIC was trading at $1.10 with a market capitalization of over $10.9 billion, making it the 15th largest crypto.
Even though MATIC was trading above $1, its social metrics suggested that bearish sentiment around the token increased.
This was evident from the fact that its Weighted Sentiment dropped.
Meaning that investors were expecting a price correction. Nonetheless, its Social Volume rose, signifying its popularity in the crypto space.
Source: Santiment
A price correction or a further uptrend?
Since bearish sentiment around the token rose, AMBCrypto checked Santiment’s data to better understand what to expect. As per our analysis, we found that the token’s MVRV ratio dropped last week.
Its Network Growth also dropped in the last few days, meaning that fewer addresses were created to transfer the token.
Source: Santiment
Since the aforementioned metrics looked bearish, AMBCrypto checked MATIC’s daily chart. Our analysis revealed that the price touched the upper limit of the Bollinger bands.
This suggested that sell pressure on the token might increase, which can result in a decline in its value in the days to follow.
On top of that, Polygon’s Relative Strength Index (RSI) was also resting in the overbought zone, further increasing the chances of a price drop.
Read Polygon’s [MATIC] Price Prediction 2024-25
Nonetheless, the MACD was in the buyers’ favor as it displayed a bullish crossover.
Additionally, the Chaikin Money Flow (CMF) also registered an uptick, hinting that the possibility of a northbound price movement can’t be ruled out.
Source: TradingView