If this is true, MATIC’s price might decline further
Journalist
Posted:
- MATIC was down by greater than 20% within the final seven days.
- Promoting stress on the token was excessive, and indicators appeared bearish.
Polygon [MATIC] buyers had a tough trip within the final week because the token’s worth dropped by double-digits. Nonetheless, issues may get even worse for buyers, as a bearish sample shaped on MATIC’s chart at press time.
Polygon’s worth is sinking
CoinMarketCap’s data revealed that MATIC’s worth dropped by greater than 20% over the past week. In reality, the token was down by over 5% in simply the final 24 hours. On the time of writing, MATIC was buying and selling at $0.7563 with a market capitalization of over $7 billion.
Ali, a preferred crypto analyst, not too long ago identified in a tweet {that a} bearish sample had shaped in Polygon’s chart.
#Polygon | It appears like $MATIC shaped a head-and-shoulders on its 4-hour chart!
A sustained candlestick shut under the sample’s neckline at $0.79 may set off a 16% correction towards $0.67. Invalidation of the bearish outlook comes with an upswing above the proper shoulder… pic.twitter.com/doA2ECdVtH
— Ali (@ali_charts) November 21, 2023
As per the tweet, MATIC shaped a head-and-shoulders on its 4-hour chart. A sustained candlestick shut under the sample’s neckline at $0.79 may set off a 16% correction towards $0.67.
Nonetheless, if issues fall into place, MATIC’s worth will go up once more after the downtrend within the brief time period.
AMBCrypto took a take a look at MATIC’s liquidation heatmap to higher perceive at what second buyers selected to promote. In keeping with our evaluation, Polygon’s liquidation elevated considerably on the twentieth of November, when the token’s worth reached $0.86.
This triggered a worth correction, the results of which had been nonetheless seen at press time.
Supply: Hyblock Capital
Upon additional evaluation, AMBCrypto discovered that MATIC’s Provide on Exchanges spiked final week, whereas its Provide exterior of Exchanges plummeted. This clearly hinted at larger promoting stress on the token.
Not solely that, however whales’ confidence in Polygon additionally dwindled, as evident from the drop in its provide held by prime addresses.
Damaging sentiment across the token additionally elevated in the previous few days, which could possibly be attributed to its bearish worth motion. One other bearish metric was Polygon’s MVRV Ratio, which sank as effectively.
Supply: Santiment
Is an additional downtrend possible?
AMBCrypto’s evaluation of MATIC’s each day chart identified that its MACD displayed a bearish crossover. The token’s worth was coming into a much less unstable zone, minimizing the probabilities of an unprecedented worth surge within the close to time period.
Nonetheless, MATIC’s Relative Power Index (RSI) and Chaikin Cash Move (CMF) each registered upticks — an indication of a development reversal.
Supply: TradingView
Is your portfolio inexperienced? Take a look at the MATIC Profit Calculator
Polygon has one other trick up its sleeve, which may additionally assist flip the scenario round within the token’s favor. Polygon had earlier introduced its plan for Polygon 2.0, through which MATIC will probably be upgraded to a brand new POL token.
The method has already been initiated on Ethereum [ETH] mainnet. As soon as accomplished, it could possibly be a game-changer for the token.
The POL token improve is now dwell on Ethereum mainnet.
Polygon 2.0, launched this summer season, is a roadmap for scaling Ethereum to construct the Worth Layer of the Web. POL unlocks that future.
POL is a next-generation token that may energy an unlimited ecosystem of ZK-based L2 chains.… pic.twitter.com/gmrsu0ZqLz
— Polygon (Labs) (@0xPolygonLabs) October 25, 2023
