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Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
Polygon [MATIC] witnessed a spike in growth exercise in line with Santiment, however social engagement has seen a dip over the previous month. On the charts, MATIC noticed a pointy rejection on the $0.94 resistance mark.
On the time of writing, the momentum was in favor of the sellers. But, this might shortly change if Bitcoin [BTC] bulls hauled BTC previous $19.4k. Can the native token of Polygon flip the $0.77 degree again to help, or wouldn’t it see additional losses to maneuver towards $0.67?
MATIC- 4-Hour Chart
![Polygon [MATIC] sees downward trend strengthen on shorter timeframes](https://statics.ambcrypto.com/wp-content/uploads/2022/09/PP-3-MATIC-H4-1.png)
Supply: MATIC/USDT on TradingView
The four-hour chart had a key degree of help at $0.77, marked in dashed white. In August, this space noticed a number of exams by the worth. Every time, the patrons have been in a position to rebuff the bears.
In direction of the tip of August, the bulls have been in a position to provoke a powerful rally to $0.94. This degree of resistance had been a big resistance zone in early August as effectively, earlier than the bulls have been in a position to drive a break above.
On the time of writing, the $0.77 help zone had been retested as resistance. This pointed towards exhaustion on the patrons’ facet in current days. The Relative Energy Index (RSI) on the H4 chart was additionally beneath the 40 mark to indicate sturdy downward momentum.
MATIC- 1-Hour Chart
![Polygon [MATIC] sees downward trend strengthen on shorter timeframes](https://statics.ambcrypto.com/wp-content/uploads/2022/09/PP-3-MATIC-H1-price.png)
Supply: MATIC/USDT on TradingView
The flip of the numerous zone of liquidity at $0.77 from help to resistance previously few days meant that decrease timeframe bias must lean bearish as effectively. This meant any bounces on the worth can be for promoting.
The previous two days of buying and selling confirmed stiff promoting stress within the $0.75-$0.77 area. On the similar time, a degree of help at $0.72 was additionally recognized. This degree had final been examined by MATIC in late July.
Due to this fact, consistent with the H4 bearish bias, decrease timeframe merchants may look to trip the downward momentum to $0.722 and $0.677, one other degree of help from mid-July. The bulls would wish to flip the $0.77 degree to help to invalidate the bearish bias.
![Polygon [MATIC] sees downward trend strengthen on shorter timeframes](https://statics.ambcrypto.com/wp-content/uploads/2022/09/PP-3-MATIC-H4-indicators.png)
Supply: MATIC/USDT on TradingView
The hourly RSI was additionally beneath impartial 50 however not beneath 40, therefore momentum was solely barely in favor of the sellers on the time of writing. The Accumulation/Distribution (A/D) line really noticed a surge over the previous couple of days following the bounce to retest the $0.77 degree as resistance.
The Directional Motion Index (DMI) confirmed the Common Directional Index (ADX) (yellow) and -DI (purple) to maneuver above the 20 mark. The inference was {that a} sturdy bearish pattern was in progress in line with the DMI.
Conclusion
The subsequent day or two might see Bitcoin recuperate if the FOMC publicizes an already anticipated charge hike. In such a situation, the bearish bias might shortly be flipped to bullish. Till MATIC can climb again above $0.77, nonetheless, merchants can search for promoting alternatives.
