MATIC Price Prediction: Will Polygon (MATIC) Survive Another Onslaught?

Investors in Polygon (MATIC) may have been forced to take matters into their own hands. From the observation on-chain, this potential action can be linked to MATIC’s underwhelming performance.

Investors in Polygon (MATIC) may have been left feeling restless, as the token's price continues to falter. A recent analysis of on-chain data reveals a potential brewing action among investors.

At the time of writing, MATIC trades at $0.49, down 11.61% over the last 30 days. Could the token be facing another wave of turbulence?

Polygon Institutional Status Fades

According to data from blockchain analytics platforms, MATIC may encounter difficulties in bouncing back. This is due to a higher volume of tokens prepared for selling compared to those awaiting lower prices to buy.

Utilizing the Exchange On-Chain Market Depth, an indicator that tracks the order books of the top 20 exchanges, BeInCrypto observed that traders are ready to sell a total of 90.32 million tokens once MATIC hits $0.50, as evident in the ask (sell) segment of the order book.

On the other hand, the total bids (buy orders) set for $0.49 are slightly over 55 million tokens. The disparity between the buy and sell orders indicates a higher volume of traders prepared to remove the Polygon native token from their portfolios.

If this position remains unchanged over the next couple of days, MATIC's price may experience another significant plunge.

Moreover, the large holders’ netflow has decreased by 220% in the last seven days. Large Holders’ netflow measures whales and institutional interest in a cryptocurrency. An increase implies rising accumulation, while a decrease suggests distribution.

At one point, MATIC was once an institutional favorite. But this recent decline implies that the ecosytem has changed, and investors are skeptical of HODLing MATIC.

Should MATIC continue to face massive institutional distribution, its price may encounter another round of capitulation.

MATIC Price Prediction: More Losses on the Radar

According to the daily chart, MATIC has failed to break above the descending trendline since June 6. The inability to move past the region suggests that the token remains in bearish territory. If MATIC fails to rise above this trendline, then the price may struggle to recover.

In addition, the Moving Average Convergence Divergence (MACD) is negative. The MACD uses the difference in moving averages to measure momentum. When the reading is positive, momentum is bullish

When it is negative, momentum is bearish. If this trend continues, MATIC's price may continue to fall. The On Balance Volume (OBV), which measures buying and selling pressure, gave similar indications.

At press time, the OBV trends downward, indicating that sellers have been liquidating MATIC in large numbers. If this continues, the MATIC price may head toward $0.42. However, a resurgence in buying volume could halt the downtrend and possibly lead to the price reaching $0.54.

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