Polygon’s price has dropped 12% in 24 hours, with trading volumes increasing by 33%. As 91% of wallets are in losses, market sentiment remains negative, leading to potential further price declines.
Polygon [POL] is going down very quickly. Its price has dropped 12% in 24 hours and is now trading at $0.457 at press time. Even though prices were going down, CoinMarketCap says trade volume went up by 33% to $248M.
It’s been hard for Polygon because its price has dropped about 33% in the last 30 days.
This behavior has made wallets less profitable, and now 91% of wallets are losing money.
When a lot of people are losing money, it makes the market feel bad, which makes prices drop even more. Also, buyers may decide to sell to cut their losses, which adds to the pressure on the sell side.
As long as these negative conditions last, are there any signs of a recovery? If so, could this trend change?
Polygon is too cheap, according to RSI.
On the four-hour chart for the altcoin, Polygon’s Relative Strength Index (RSI) shows that the token has been sold for too little. This measure has dropped to 23 points, which is the lowest level seen since the middle of December.
An RSI that is too low generally comes before a correction to the upside. Also, if you look at past patterns, you can see that POL likes to start a rally whenever the RSI hits levels of “oversold.” In this way, the currency might be ready for a comeback.
However, the Average Directional Index (ADX) has not yet shown that the decline is over.
The ADX line is actually going up, which means the current downward trend is getting stronger. POL could fall to the 1.618 Fibonacci level, which is equal to $0.416, which is part of the trend.
