Polygon (MATIC) struggles to keep up with crypto market's bullish momentum

As the crypto market experiences a spectacular rebound, Polygon (MATIC) seems to be lagging behind. Despite its established position in the top 20, the native token of the layer 2 blockchain faces challenges that are slowing its progress.

A mixed performance for MATIC

The past week has been a mixed one for Polygon. On July 16, MATIC briefly hit $0.55, but failed to break through that threshold for long. The price then dropped back to $0.52 before stabilizing around $0.5451. This volatility contrasts with the bullish trend seen on other altcoins.

The Global In/Out of the Money (GIOM) indicator revealed a worrying situation for investors. Until July 9, no holder of the native crypto of polygon was in positive territory. Despite a slight rebound, only 5% of investors, those who bought between $0.0032 and $0.52 are currently profitable.

This stagnation comes after a record performance in March, followed by a sharp drop to $0.48 last week. Such a decline raises questions about MATIC's ability to rebound in the current environment.

Uncertain outlook for Polygon

Technical analysis does not suggest an immediate upturn for MATIC. On July 5, the price tested a historical support at $0.47, before rising to $0.54 a week later. However, the Money Flow Index (MFI) indicates a lack of liquidity directed towards MATIC, making a break above $0.57 unlikely in the short term.

The MFI, which measures capital inflows and outflows, remains below its neutral line. This weakness suggests that buying interest in MATIC is fading. If this trend continues, the price could fall back below $0.50 or even retest the support at $0.47.

However, a close above $0.53 would invalidate this bearish scenario and could boost MATIC towards $0.64. Faced with these challenges, Polygon will have to redouble its efforts to convince investors and regain positive momentum in a generally euphoric crypto market.