base-pidgin

Polygon's (POL) price has dropped 9% in seven days, sparking concerns about its valuation. Key points:

Network Activity and Valuation

1. *Rising NVT ratio*: POL's Network Value to Transaction (NVT) ratio has increased, suggesting a lack of strong network activity to support an uptrend.
2. *Declining dApp volumes*: Polygon's 30-day dApp volumes have dropped by 41% to $6.16 billion.
3. *Reduced network usage*: Unique Active Wallets have decreased by 22% to 3.62 million.

Price Analysis

1. *Descending triangle pattern*: POL is trading within a descending triangle pattern, confirming a bearish bias.
2. *Critical support level*: The lower trendline of the pattern stands at $0.43, a level that POL is testing.
3. *Potential drop*: If this support level fails to hold, POL could drop towards $0.40.

Market Sentiment

1. *Lack of conviction*: Polygon's Open Interest has dropped by $14M in less than five days, indicating uncertainty and lack of conviction in the current trend.