The crypto space has been unstable over the last few months. Current statistics from the “Fear and Greed” index have shown that the market is having a negative tendency. Therefore, Polygon and other projects have shown “ extreme fear,” making it the perfect time to invest in the dip.
In this article, you will discover more about the “Fear and Greed” indicator and what is causing Polygon to have such a fear of this trend.
What is the “Fear and Greed” Index?
As inflation continues to accelerate in the United States, the US Federal Reserve has sprung into action to tackle the issue since the year began. This has led large Institutional investors to seek safer and less risky investments such as bonds. As a result, these investors pulled out their investments in cryptocurrencies and stocks.
Therefore, to make investors have an accurate sensation of how the market is evolving, the “Fear and Greed” index was created. This tool reveals the market sentiment of individuals invested in a specific asset. The tool generally consists of five levels: Extreme Fear, Fear, Neutral, Greedy, and Extreme Greed.
This indicator allows investors to take a breather and examine if their feelings about the market are accurate. Also, it helps them separate sentiment from data. As mentioned earlier, the Fear and Greed indicator, in polygon, is currently at extreme fear. This shows that $MATIC investors are in a state of panic which has led to most investors selling off their $MATIC holdings.
Fear means that Altcoin Holders needs to Buy
A recent tweet from the “Altcoin Fear and Greed” Index showed that Polygon’s Fear and Greed had hit 9, indicating extreme fear. This is one of the lowest scores (fear) of any altcoin.
#Polygon Fear and Greed Index is currently 9 – EXTREME FEAR
Current #MATIC price is 1.3918871393815069 usd
Current market cap is 10,366,625,804 usd
24h trading volume is 1,512,644,910 usd$MATIC FGI live update#cryptocurrencies #altcoins #cryptonews #crypto pic.twitter.com/31kZh4vZHD
— Altcoin Fear and Greed Index (@AltcoinFGI) January 24, 2022
Fear is often a cause of worry, but widespread panic in the market could be a good sign. This means a dip in prices can be an opportunity to buy crypto assets cheaper than anticipated. Skillful traders are often willing to wait to buy the dip.
Although the market sentiment is very poor to most investors, this is the best time to accumulate $MATIC at a discount. From an institutional point of view, the best time to buy an asset is when investors hold a negative bias toward the asset (as revealed by the MATIC Fear and Greed indicator). Also, the best time to sell or take profit is when investors hold a positive sentiment about the asset class. In this case, the $MATIC Fear and Greed indicator will be at Greedy or Extreme Greed.
Matic Price Activity
As of writing this article, the price of MATIC is $1.67, with a marketcap of $11 billion and a 24-hour trading volume of $783 million. Also, the price of MATIC was down 3.3% in the last 24 hours.
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