Why is Polygon (MATIC) crypto down today?

Highlights

• The multi-blockchain network was devised to be a seamless protocol that used for Ethereum scaling and its improvements.
• Its flexible, modular framework can be used to build multiple applications in one go.
• The MATIC crypto on Monday was trading at US$0.466888 with a trading volume of US$41,06,29,330 over a day, according to CoinMarketCap.

Polygon (MATIC) has been in a bearish phase of late. The multi-blockchain network was devised to be a seamless protocol that used for Ethereum scaling and its improvements.  Its flexible, modular framework can be used to build multiple applications in one go. 

Dubbed as one of the drivers of the Web3 technology, Polygon users can create unique ZK rollup chains or any other kind of infrastructure which may be necessary for a developer to applications. 

The MATIC token over the past week or so has witnessed red as it was down by over 17.1%, according to CoinGecko. The momentum seems to have also stretched to this week as it was down by 3.48% at 11:24 AM (GMT +1), according to CoinMarketCap. 

Why is it trailing? 

Polygon's drop may be due to the prevailing bearishness in the market, which has impacted most cryptos. Recently, Coca-Cola teamed up with the Polygon network to launch an NFT series honouring the LGBTQIA+ community. Each of these NFTs aims to shine colour-filled light on the community's members and spread a message of love. 

Polygon as a unique system combines the Plasma Framework and the energy-efficient Proof-of-Stake (PoS) blockchain architecture. The Plasma framework is also utilised by Ethereum, allowing for the seamless execution of smart contracts. 

If we look at the chart, it will indicate the slowing down of the market activity. 

Image credit: Trading View

The MATIC RSI eased as it stood at 43.70 during the intraday trading session. 

Even the MACD line indicates that the signal line has caught up with the MACD line indicating the bearish sentiments creeping into the market. This may also be due to the overall mood of the market, which has taken a toll of late, sending the overall crypto market below US$900 billion. 

As of 4 July, the overall crypto market stood at US$882.02 billion with a trading volume of US`$41.43 billion. 

How is MATIC crypto's price faring

The MATIC crypto on Monday was trading at US$0.466888 with a trading volume of US$41,06,29,330 over a day, according to CoinMarketCap. The only silver lining, amid the free fall, was that it was still managing to attract some investors as it saw an uptick of 3.84%. The MATIC crypto on Monday had a live market cap of US$3,73,82,77,043 and a maximum supply of 10,00,00,00,000 MATIC coins. 

MATIC's bearishness is well documented by the fact that in the last 30 days, it has been down by 20.9%. In fact, in the past 24 hours, Polygon has been one of the top losers in the market. The 19th-ranked crypto witnessed significant loss just like NEM and KAVA tokens. 

How soon can MATIC token reverse its losses remain to be seen, but market participants must continue with their market research irrespective of the market scenario and then take decisions accordingly. 

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