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 Could. The variety of distinctive addresses on the MATIC chain has dropped by an astonishing 85%. Whale transactions have been additionally falling.
This confirmed a community in decline which was mirrored on the worth charts as properly.
MATIC- 12 Hour Chart
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 a couple of days, it appeared to sign a bullish market within the making. Nevertheless, the bulls have been unable to defend the $1.58 assist degree and crashed proper by means of this degree early within the month of April.
It was the same story in Could when the worth dropped beneath the $1.2 demand zone and retested it as resistance. The $1 degree didn’t final lengthy as assist both.
The bears are extraordinarily robust on the charts, and regardless that 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 previously two months. The value would wish to rise previous the 55 SMA, and in addition the $0.75 degree so as the break the earlier decrease excessive.
Highlighted in white on the RSI is a sequence of upper highs, whereas the worth made a sequence of decrease highs on the worth chart. It 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 Could, and regardless that it has made increased lows previously couple of weeks, there was no proof but of robust demand to reverse the downtrend.
The CMF was simply above the +0.05 degree to point some notable capital movement into the market.
The pattern remained bearish, and the symptoms didn’t present a pattern reversal in sight but. The hidden bearish divergence steered that the prior downtrend was more likely to proceed within the days/weeks to return.