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MATIC has a bearish market structure on the one-day chart
The$0.8-$0.9 region, if revisited, would serve as resistance and could halt the bulls
From April 9th to 13th, the price of Polygon [MATIC] dropped by approximately 38%. Lately, there have been efforts to push the price above a significant barrier at $0.73.
AMBCrypto reported that the resistance zone was stiff and MATIC bulls might not have much luck.
The validation of this perspective occurred when the token’s bullish momentum unexpectedly reversed at the price point of $0.751. Currently, the larger chart trend indicates a clear downtrend. It is advisable for investors to brace themselves for potential further losses.
The five-month trendline was broken
On April 12th, the price broke through the upward trendline support that had been in place since October. The bearish market conditions worsened, causing the price to fall below the $0.73-$0.75 price range.
For context, this region has acted as a demand zone since 21st November 2023- nearly five months.
The Awesome Oscillator registered a value of -0.22, indicating significant downward pressure. Meanwhile, the Daily Directional Movement Index suggested a robust bearish trend on the daily chart.
Both the ADX (yellow) and the -DI (red) were above the 20 mark.
On both the daily chart and lower timeframes, the price trend was undeniably downward. Dropping below the previous swing low of $0.69 suggested that MATIC could be moving towards the following support level at $0.5.
The short-term bounce saw demand flow in
Based on the Open Interest figures, it appeared that investors’ attitudes towards the market had remained pessimistic since the beginning of April. Before the significant losses commenced on April 12th, there was some degree of cautious optimism surrounding MATIC, hinting at potential speculative activity.
Although CVD’s rate had decreased significantly in April, it started showing slight improvement only over the last three days. This small uptick was reassuring, yet insufficient to stop the downward trend.
Read Polygon’s [MATIC] Price Prediction 2024-25
Based on the information provided, it seems that the short-term demand in the spot market showed some signs of improvement but wasn’t strong enough yet to offset previous declines.
The OI continued to crater as speculators flocked to the sidelines to await an uptrend.
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2024-04-19 00:07