Attention MATIC holders! Here’s why another downtrend could commence
Journalist
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Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
- MATIC traded above the next timeframe demand zone
- The rally to $0.87 and subsequent rejection confirmed the downtrend was prone to prolong additional southward
Polygon [MATIC] was buying and selling simply above a powerful demand zone. The $0.5 assist degree has been defended properly since June, but it surely was clear from the value motion that the bulls have been dropping energy.
Learn Polygon’s [MATIC] Value Prediction 2023-24
The rally to $0.87 in July was worn out over the previous two months and was a powerful sign that the bears have been out for blood. Proof from the symptoms supported the concept MATIC was headed towards additional losses.
The Fibonacci extension ranges current bearish worth targets for MATIC
Supply: MATIC/USDT on TradingView
The transfer down from $0.97 to $0.5 in late Might and June was used to plot a set of Fibonacci retracement and extension ranges (pale yellow). After the sharp downward transfer, MATIC rallied to the 78.6% retracement degree at $0.87. A plunge to the $0.51 mark occurred after this rally.
This was a powerful signal that the 23.6% and 61.8% Fib extension ranges have been the following targets. It’s no assure that MATIC would drop that low however the worth motion and the symptoms recommend it might.
The Relative Power Index (RSI) on the three-day chart has been beneath impartial 50 since April to point a powerful downtrend on the longer time horizons. The On-Steadiness Quantity (OBV) has additionally been sliding decrease since June, which denoted promoting quantity outweighed the consumers and the market was dominated by bears.
The $0.32-$0.5 was a bullish order block on the weekly timeframe. The 23.6% extension degree at $0.4 was an inexpensive bearish goal within the coming weeks.
MATIC noticed constant improvement exercise but in addition spikes in promoting strain in September
Supply: Santiment
The event exercise has trended larger since August with out heed to the declining costs. That is an encouraging issue for long-term holders. The availability on exchanges has additionally slowly dwindled since mid-July to point out an accumulation of the tokens in chilly wallets.
Is your portfolio inexperienced? Verify the Polygon Revenue Calculator
The Market Worth to Realized Worth (MVRV) ratio signaled MATIC was undervalued, however doesn’t promise the costs will rally. In latest weeks, the dormant circulation metric noticed a number of spikes to underline the sudden motion of beforehand dormant MATIC. This probably pointed to particular person waves of promoting.
