Polygon price has been in a freefall for the past few days amid the US SEC legal battle against Binance and Coinbase and the Fed’s hawkish pause. The asset has crashed by more than 25% in the past week and nearly 52% in the past three months. MATIC has been among the worst-performing cryptocurrencies so far this year, plunging more than 22% in the year to date.
Polygon price has been on a steep decline for the past few days as whales start to fold. The asset’s total market cap has crashed over the past week to $5 billion, while the total volume of MATIC traded in the past 24 hours jumped by more than 60%, hinting at an increased selling pressure.
Earlier this month, the US Securities and Exchange Commission (SEC) accused crypto exchange giants, Binance and Coinbase, alleging that they were unregistered exchanges and they sold unregistered securities. The lawsuits sparked a massive sell-off in the cryptocurrency market and crypto prices, with crypto heavyweights Bitcoin and Ethereum, falling by more than 5% each.
In the lawsuit, SEC deemed a slew of altcoins, including Solana, Cardano, and Polygon as unregistered securities. The allegations saw the prices of the aforementioned altcoins dive into record lows amid a spark in selling pressure.
Polygon price sank further this week following the recent pause rate by the US central bank that triggered another wave of selloffs. The US Federal Reserve announced its first pause in two years in its interest rates but signaled its support for two more rate hikes this year, with one to be implemented at its next July meeting.
The recent sell-off in the MATIC price has left crypto whales in consolidation mode as the altcoin’s on-chain data flashes multiple red signals. Data by GlassNode shows that as of June 10, large transactions on the Polygon network have been dropping persistently by 220%. As such, the current trend indicates that crypto whales are losing confidence in Polygon’s price recovery prospects.
Polygon price has been experiencing a massive sell-off in the past few days, crashing to its lowest level since last year in June. Along the way, the digital currency has formed a steep descending channel, signaling a continuous downside. At the time of writing, MATIC was trading lower at $0.5859.
On the daily chart, MATIC has managed to move fall below the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has slipped further into the oversold region at 21, with the Moving Average Convergence Divergence (MACD) indicator hinting at more downside.
Looking at the fundamentals and technicals, the Polygon price is likely to continue falling in the ensuing sessions. A further downswing will have bears eyeing the next support level at $0.50. However, a move past the critical level of $0.7760 might give the asset bullish support.
MATIC Price Chart