The price of Polygon continues to decline, reaching its lowest level since April 2021. The cryptocurrency market is facing significant challenges, and Polygon is no exception.
Current Situation of Polygon Price
Polygon's price has dropped to $0.1915, which is 32% off its May peak and 74% down from its 2024 high. The market capitalization has decreased from $5.68 billion to $2 billion.
Competition and Factors Behind the Drop
Polygon is facing significant competition in the L2 sector, with other protocols like Base and Arbitrum taking a substantial market share. Base, in particular, has $5.14 billion in TVL and $4.16 billion in stablecoins.
Technical Analysis
Technical analysis shows that the POL token has fallen below the 23.6% Fibonacci retracement level and the 50-day moving average. It is expected that the price may continue to drop until it reaches the year-to-date low of $0.1487. A move above the 50% retracement level could change this bearish outlook.
The decline in Polygon's price reflects the current state of the cryptocurrency market and the growing competition among projects. The success of the network's future development depends on its ability to adapt to new conditions and challenges.
