Polygon's native token, POL, faces downward pressure due to a combination of factors, including rising selling pressure and decreased network activity.
Polygon 's native token, POL, has experienced a decline in recent days, falling 9% in the past week and trading near a critical support level of $0.43. This downturn is attributed to a confluence of factors, including rising selling pressure and a significant reduction in network activity. Polygon 's Network Value to Transaction (NVT) ratio has surged from 27.66 to 86.44 over the past two days, indicating a potential overvaluation and a lack of user engagement to fuel a price rebound.
This decline in network activity is reflected in a 41% drop in dApp volumes to $6.16 billion and a 22% decrease in Unique Active Wallets to 3.62 million over the past 30 days. Furthermore, the Total Value Locked (TVL) on the Polygon DeFi ecosystem has fallen to a weekly low of $1.03 billion. Technical indicators also suggest a bearish outlook for POL. The token is trading within a descending triangle pattern on its lower timeframe, reinforcing the downtrend. The negative Bollinger Band Trend indicator points to continued downward pressure, with the potential for a drop towards $0.40 if the $0.43 support level is breached. However, the Money Flow Index (MFI) at 30 suggests oversold conditions, hinting at a possible buy signal and a potential for a bullish reversal. Derivative market indicators also paint a bearish picture, with a decrease in open interest, suggesting waning trader confidence and a possible consolidation within the current price range
POLYGON POL CRYPTOCURRENCY NVT RATIO NETWORK ACTIVITY DEFI TECHNICAL ANALYSIS
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Polygon’s network growth surges – Identifying what it means for POL’s pricePolygon has seen a staggering 426% increase in active addresses over the past week, signaling strong growth in user engagement...
Read more »
Polygon (POL) Price Analysis: Will Bulls Break Resistance and Ignite a Rally?Polygon (POL) is at a crucial price point. Bulls are battling bears within a descending triangle pattern. The token's price action suggests a breakout in either direction could determine its next significant move. On-chain metrics show positive signs, with increased activity, transaction volumes, and declining exchange reserves. Will POL break above the $0.47 resistance?
Read more »
Polygon Price Drops 12% in 24 Hours: Oversold RSI Hints at Potential ReversalPolygon (POL) is facing significant bearish pressure, with its price declining by 12% in the last 24 hours. Despite a surge in dApp volumes, the overall market sentiment remains negative. However, the oversold RSI suggests a potential bullish reversal.
Read more »
ENA Token Price Dips Amidst Large Whale DepositsArthur Hayes' large deposits of ENA tokens into Binance and Bybit trigger market volatility. While the price falls below critical support levels, robust user engagement and positive long-term investor sentiment offer a glimmer of hope for the token's future.
Read more »
UN Food Price Index Dips in December but Remains Up Year-on-YearThe United Nations' food price index declined in December compared to November, primarily driven by falling international sugar prices. Despite the monthly decrease, the index still showed a significant year-on-year increase. Sugar prices led the decline, attributed to improved sugarcane crop prospects in major producing countries. Dairy prices also fell after seven consecutive months of increases, while vegetable oil, meat, and cereal prices saw varied movements.
Read more »
Shiba Inu (SHIB) Price Dips Despite Whale AccumulationShiba Inu (SHIB) experiences a price drop, but whale accumulation signals potential bottoming.
Read more »