This Level Retest Could Signal A Selling Window

Polygon’s MATIC token experienced fleeting 24-hour gains that offered a momentary glimmer of hope for its investors. However, this uptick was juxtaposed against lingering weaknesses in the bullish sentiment, prompting questions about the potential for further downside. 

In the last five days, MATIC embarked on a trajectory marked by a relatively narrow price range, predominantly oscillating between $0.537 and $0.56. This phase of consolidation led to a visible reduction in market volatility, consequentially resulting in a discernible drop in the open interest metric throughout the week. 

This deceleration in market activity not only hinted at speculators’ ambivalence towards predicting the token’s next trajectory but also suggested that traders might need to exercise caution and patience as the market seeks clearer signals.

Analyzing MATIC’s Current Climate

Beneath the surface of these price fluctuations and speculative hesitations, a series of interesting developments unfolded. The sentiment prevailing in social discussions around MATIC’s price exhibited a noteworthy shift towards negativity.

Insights gleaned from Santiment data revealed a gradual decline in MATIC’s Weighted Sentiment that commenced around August 25, ultimately settling at a current value of -0.37 as of today.

Source: Santiment

Additionally, subtle indicators hinted at underlying accumulation dynamics taking shape. The average coin age exhibited an upward trajectory, indicative of the gradual accumulation of MATIC tokens across the network. Coinciding with this trend, the volume of supply held on exchanges witnessed a decline over the past week, once again underscoring the narrative of token withdrawal and strategic accumulation.

MATIC Current Valuation And Outlook

Despite the drop in the token’s social sentiment rating, MATIC still registered a 1.5% surge over the past 24 hours, and trading at $0.559, according to crypto market tracker CoinGecko. Over a broader time frame of seven days, the token’s incremental gain stands at a modest 0.6%. 

Meanwhile, in a timely and pivotal announcement, Polygon’s Co-Founder Sandeep Nailwal unveiled insights into the forthcoming migration of MATIC to a new POL Token. Of notable significance in this update was the assurance extended to users – a seamless transition to POL was promised without the risk of forfeiting rewards earned from ongoing MATIC staking activities.

Ideally, as a user you…