Polygon (MATIC) Continues To Plunge; Why Are The Bears Still Dominant?

Polygon (MATIC) is beneath the $1 mark in the present day because the bears proceed to strain its value. From April 19, 2023, it moved right into a downtrend steadily to its present value degree of $0.966 in the present day.

The current value volatility and decline skilled by Bitcoin and Ethereum appear to have a ripple impact on different tokens out there. Nonetheless, MATIC stays above its January 1 value of $0.76 regardless of the decline, holding onto most of its positive aspects.

However, a sweep of earlier lows stays attainable if the bears keep their cost. Buyers and the overall crypto market hope the present decline is a minor correction, not a downtrend just like the crypto winter of 2022. 

Will MATIC Pivot Off The $0.9321 Important Assist Degree?

Some main cryptocurrencies are in a downtrend, excluding a couple of altcoins with minor positive aspects. The upcoming US fee hikes and different components, equivalent to rising bitcoin mining problem, may have an effect on the market negatively.

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Polygon ranks quantity 9 on the checklist of cryptocurrencies and is a platform for Ethereum scaling. Additionally, with the current upgrades, customers can create Optimistic Rollup chains and ZK Rollup chains as required by the developer. Its multi-functionality is without doubt one of the causes its neighborhood is optimistic a few rally within the coming weeks. 

MATIC is in a downtrend forming a 3rd consecutive pink candle on the every day chart with decrease lows. It has dropped beneath its 50-day and 200-day Easy Shifting Averages (SMA), a bearish development within the quick and long run. MATIC moved into the downtrend on April 19, forming an extended pink candle that closed beneath the 50-day SMA.

Additionally, the Relative Energy Index (RSI) is 31.91, descending into the oversold area of 30. It implies that the bears are accountable for the asset’s value. Nonetheless, MATIC is approaching the $0.9321 help degree, which beforehand acted as a pivot level on January 1, 2023. MATIC’s RSI will transfer to the oversold area when its touches this degree forcing the bulls to rally once more.

Anticipate a value improve as soon as the asset enters the overbought zone. The subsequent help degree is $0.7472; the resistance ranges are $1.026 and $1.1914. Additionally, the $1 value degree has turn out to be a psychological resistance level.

MATIC has shaped an ascending triangle sample on the month-to-month chart; the following breakout from this sample will likely be very important to its value motion. It traded on the upside in February and March 2023 earlier than retracing in April.

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A return to the upside of the triangle is feasible if the bulls rally. Additionally, the Month-to-month RSI worth is 53.60 within the impartial zone however shifting downward, reflecting the bearish development in April.

Featured picture from Pixabay and chart from Tradingview