- Polygon’s NVT ratio has been rising over the past two days, suggesting a lack of strong network activity to support the upward trend.
- Continuing the downward trend, Polygon’s 30-day dApp volume also decreased by 41%.
Polygon (POL) The bearish trend followed a 9% drop in 7 days. At press time, POL was trading at an important support level of $0.43, with a break above this level expected to apply further downward pressure.
Most of this decline comes from increased sales activity. However, Polygon’s recovery attempts are also being hampered by reduced network usage.
As network activity decreases, Polygon’s NVT rises.
The Network Value to Transaction (NVT) ratio increased from 27.66 to 86.44 over the past two days. This rise suggests that POL may be overvalued due to declining blockchain activity.
Source: IntoTheBlock
This NVT also shows that despite the recent downward trend, POL is still poised for further declines due to a lack of network users to drive price recovery.
Over the past 30 days, the volume of dApps on the network has fallen 41% to $6.16 billion, according to data from DappRadar. At the same time, unique active wallets decreased by 22% to 3.62 million.
On the decentralized finance (DeFi) side, the Polygon network also experienced a decline in activity, with total value locked (TVL) hitting a weekly low of $1.03 billion. DeFiLlama.
Blockchain’s daily profit also dropped to $6,860. This reduced network activity may continue to impact POL’s ability to recover from bearish trends.
POL price analysis
Polygon traded within a descending triangle pattern on lower time frames, confirming a bearish bias and continuation of the downtrend.
The lower trendline for this pattern was $0.43, which is the level POL was testing at press time.
Source: TradingView
If this support level fails to hold, the token could be ready to fall towards $0.40. The negative Bollinger Bands trend indicator showed that the bears were in control and could trigger such a decline.
On the other hand, the money flow index (MFI) was 30, suggesting oversold conditions. This decline could create a buy signal that could help with a bullish reversal.
Read Polygon (POL) price forecast for 2025-2026
lack of market confidence
Polygon’s open interest fell $14 million in less than five days to $73.59 million. Coin analysis. This shows that derivatives traders are exiting positions due to uncertainty and lack of confidence in the current trend.
If traders are no longer willing to open new positions, reduced volatility may cause POL to consolidate within its current range. Moreover, a decline in open interest during a downtrend strengthens the bearish outlook.