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Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Altcoins that fall by 50% on the charts can fall yet one more 50%. Polygon has been on a gradual downtrend on the charts since late March and flipped the $1.2 area from demand to a provide zone in Might. The variety of distinctive addresses on the MATIC chain has dropped by an astonishing 85%. Whale transactions had been additionally falling.
This confirmed a community in decline which was mirrored on the value charts as nicely.
MATIC- 12 Hour Chart
Supply: MATIC/USDT on TradingView
The downtrend was characterised by a sequence of decrease highs and decrease lows on the H12 chart from late March. The mid-March rally noticed MATIC climb from the $1.36 lows to the $1.71 highs. On the time, it did break simply above a earlier decrease excessive, and for just a few days, it appeared to sign a bullish market within the making. Nonetheless, the bulls had been unable to defend the $1.58 assist degree and crashed proper by way of this degree early within the month of April.
It was an identical story in Might when the value dropped under the $1.2 demand zone and retested it as resistance. The $1 degree didn’t final lengthy as assist both.
The bears are extraordinarily sturdy on the charts, and although there are decrease timeframe rallies, the downtrend appeared set to proceed. The 55-period transferring common (inexperienced) and the 21-period SMA have each acted as resistance up to now two months. The worth would want to rise previous the 55 SMA, and likewise the $0.75 degree so as the break the earlier decrease excessive.
Rationale
Supply: MATIC/USDT on TradingView
Highlighted in white on the RSI is a sequence of upper highs, whereas the value made a sequence of decrease highs on the value chart. This can be a hidden bearish divergence within the making and is indicative of a continuation of the downtrend.
At press time, the RSI was beneath impartial 50, and highlighted bearish momentum remained dominant. The OBV has additionally seen a pointy drop in Might, and although it has made increased lows up to now couple of weeks, there was no proof but of sturdy demand to reverse the downtrend.
The CMF was simply above the +0.05 degree to point some notable capital circulation into the market.
Conclusion
The pattern remained bearish, and the indications didn’t present a pattern reversal in sight but. The hidden bearish divergence instructed that the prior downtrend was prone to proceed within the days/weeks to return.
