Bitcoin, along with various alternative cryptocurrencies, is witnessing significant market trend changes, with Polygon’s Layer 2 and Polygon zkEVM confronting issues that could dent network utilization. In a recent market update, MATIC has seen a notable decline of more than 6% over the past week, as per data from 21milyon.com. The dominance of bearish sentiment in trading has fueled this downward price trajectory.
Market Behavior and MATIC’s Performance
Despite the recent slump, MATIC’s value has seen a modest rebound of 1.5% in the past day, trading at $0.9874, with its market capitalization surpassing $9.7 billion, ranking it as the 16th largest cryptocurrency. The token’s erratic price fluctuations serve as a focal point of discussion within the crypto community, reflected by its substantial social volume. Current sentiment analysis, however, positions MATIC in a negative light.
The prevailing bearish market sentiment is further corroborated by MATIC’s daily chart, where the MACD highlights a definitive downward trend. Additionally, a sharp decline in Polygon’s Chaikin Money Flow (CMF) forecasts a potential further decrease in price. Nevertheless, a recent bounce off the Bollinger Bands’ lower limit suggests a potential turnaround for MATIC’s valuation.
Technical Hiccups for Polygon’s Network
While the potential for a bullish surge exists amidst the volatility, Polygon’s L2 zkEVM has encountered a technical snag. An official communication revealed a sequencer problem within the zkEVM Mainnet Beta, traced back to changes in L1. This setback has solely impacted the zkEVM network, leaving other components like the PoS blockchain and Polygon CDK unaffected.
Consequently, L2’s daily active addresses have seen a decline following a brief surge, with a corresponding dip in daily transactions starting March 21st. These events have cast shadows over the network’s activity and could play a role in the future market performance of MATIC.