Polygon (MATIC) Investors Selling Off, Contributing to Bearish Market Sentiment

Polygon (MATIC) has seen a sharp drop in price since the US SEC listed it among the ten cryptocurrencies that could be classified as securities. Negative sentiment has spread, causing significant sell-offs on the market and leading to MATIC losing 15% in value. Unsettled investors have been withdrawing their MATIC tokens from various DeFi smart contracts, causing further market distress. The percentage of MATIC supply in smart contracts dropped from 64.9% to 63.7% between May 29 and June 8, indicating that a significant number of tokens have been unstaked over the past week. Long-term holders have also lost confidence in the Polygon ecosystem, and Age Consumed shows that large numbers of coins have been sold off. It is predicted that MATIC’s price will continue to fall in the coming days, with a possible drop towards $0.65. If support at $0.76 fails to hold, the price could reach this point, with a further downside risk. Bulls may be able to negate this pessimistic narrative if the price exceeds $0.80.