Polygon (MATIC) Price Prediction: POL May Witness a Further Downturn

The network's decision to replace its native token with a new one should typically spark a positive response. However, since Polygon confirmed the September 4 date

Polygon (MATIC) has completed the 1:1 migration of its native token to POL, making it the network’s gas and staking token. However, the price problems that plagued MATIC have now followed POL.

At press time, POL is trading at $0.36, and the token upgrade has had a minimal impact on its price. The token’s price has fallen by 3% in the last 24 hours. But during that time, its trading volume has increased by 925%.

Whenever an asset’s price falls and its trading volume rises, it usually indicates a lot of market activity caused by strong selling pressure. The market may be experiencing a panic-selling phase, where fear and uncertainty dominate due to various factors, such as a network upgrade, as seen in POL’s case, or significant shifts in broader market trends. These factors can intensify selling pressure as investors react to perceived risks.

Unfortunately, many POL holders have been forced to sell their tokens at a loss. BeinCrypto’s analysis of the token’s ratio of daily transaction volume in profit to loss reveals that Thursday has seen more transactions ending in a loss than those yielding a profit.

As of this writing, this ratio stands at 0.51, indicating that for every POL transaction that has ended in a loss, only 0.51 transactions have returned a profit.

POL Price Prediction: More Decline Ahead

A 12-hour technical analysis of POL shows that its price could continue to fall. For example, the Moving Average Convergence/Divergence (MACD) indicator shows that its MACD line (blue) is below its signal (orange) and zero lines.

This indicator identifies an asset’s trend direction, changes, and potential price reversal points. When it’s set up this way, the downtrend is strong. Traders view this as a sign to exit long positions and take short positions.

However, there is still hope, as the Relative Strength Index (RSI) suggests that a price rebound may be on the horizon. At press time, the indicator is at 28.67. An RSI value below 30 indicates an asset is oversold and may be due for a rebound.

For this to happen, POL must witness a resurgence in new demand, which will change the course of the current trend. If the demand for the token spikes, it may drive a price uptick, causing it to exchange hands at $0.55.

However, if POL selloffs intensify, its price will fall further to $0.35, invalidating the bullish thesis above.

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