Polygon’s price has declined significantly, now standing at 0.457 USD. In the past 24 hours, it witnessed a 12% drop, pushing trading volumes up by 33% to 248 million USD. The Relative Strength Index (RSI) at 23 indicates that the token is in an oversold condition, usually a precursor to a price correction.

A substantial 91% of Polygon’s wallet holders are currently experiencing losses, showcasing a strong bearish sentiment in the market. The ongoing price decline, which reduced the wallet profitability drastically, is causing more selling pressure as holders may try to cut their losses, potentially prolonging the downward trend.

Despite an increase in dApp activity by 18%, overall volumes are still down 37%, maintaining a bearish outlook. The Long/Short Ratio is at 0.885, indicating more short positions than long, which reinforces the bearish momentum. A potential bullish reversal could occur if the selling pressure eases, but significant market challenges remain.