Early November is still a relatively good time to go in the market as most of the top altcoins have hit all-time highs (ATHs) and market cap is rising. However, MATIC has been in a downtrend for over 20 days.
With the larger market in a major downward correction, MATIC’s momentum has continued to slow as prices have fallen more than 20% since then.
MATIC price has been in a downtrend since Nov 1st, losing more than 26% of its value after testing a multi-week high of $ 2.22 on Oct 29. While most of the top altcoins are all heading for ATH, the MATIC price is still declining.
In fact, with the increasing market capitalization of most Altcoins, MATIC has dropped out of the top 20 by market capitalization.
Source: trade view
Despite low expectations, MATIC’s social media volume increased after the announcement of the introduction of an improved ZK-based scaling solution. The solution is to improve the authentication process for dApps in the polygon network. Many believe that this can solve Ethereum’s network congestion problems while increasing the usefulness of the network.
In addition, Polygon recently announced that it would offer faster and safer atom swaps between Bitcoin and other assets after forming a strategic partnership with Portal. Can the MATIC price grow like its social media volume?
To do this, MATIC price must first break and hold above $ 1.70.
The polygon network needs a boost
Polygon’s Total Value Locked (TVL) fell in the $ 4.5 billion to $ 5 billion range this week to $ 4.2 billion after more than two months.
In this respect, this can be seen as a bad sign for the future of the network. However, Polygon saw an increase in new addresses, reaching an ATH of 1.9 million addresses per day.
It is noteworthy that MATIC’s 7-day MVRV (ratio of market value to real value) is back in positive territory, but when prices fall, the indicator seems to be moving into an overheated area at the time of going to press.
On the flip side, his 30-day MVRV remains low (-8.8%) and still doesn’t seem to show any signs of reversal.
By the end of last month, net inflows into MATIC had multiplied as the revenue from the protocol reached a new ATH. MATIC is currently lacking a similar momentum. Given the declining volume, it looks like MATIC will need more support from the retail side before it rises or even bounces back.
While the MATIC price rally appears slow, it is not entirely a ‘standstill’. However, despite the recent bullish news, it seems to need more support from traders and a stronger network for solid growth.
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According to AMBCrypto