Disclaimer: The findings of the next evaluation are the only real 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 gentle downtrend on the charts since late March and flipped the $1.2 area from demand to a provide zone in May. 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 worth charts as effectively.
MATIC- 12 Hour Chart
The downtrend was characterised by a collection 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. At the time, it did break simply above a earlier decrease excessive, and for a number of days, it appeared to sign a bullish market within the making. However, the bulls had been unable to defend the $1.58 assist stage and crashed proper by means of this stage early within the month of April.
It was the same story in May when the worth dropped under the $1.2 demand zone and retested it as resistance. The $1 stage didn’t final lengthy as assist both.
The bears are extraordinarily robust on the charts, and despite the fact that there are decrease timeframe rallies, the downtrend appeared set to proceed. The 55-period shifting common (inexperienced) and the 21-period SMA have each acted as resistance up to now two months. The value would want to rise previous the 55 SMA, and likewise the $0.75 stage so as the break the earlier decrease excessive.
Highlighted in white on the RSI is a collection of upper highs, whereas the worth made a collection of decrease highs on the worth chart. This is 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 May, and despite the fact that it has made increased lows up to now couple of weeks, there was no proof but of robust demand to reverse the downtrend.
The CMF was simply above the +0.05 stage to point some notable capital circulation into the market.
The pattern remained bearish, and the symptoms didn’t present a pattern reversal in sight but. The hidden bearish divergence advised that the prior downtrend was prone to proceed within the days/weeks to come back.