2024-04-18 21:08:07
- MATIC has a bearish market structure on one-day chart
- The $0.8-0.9 region, if revised, would serve as resistance and might stop the bulls.
Polygon [MATIC] It witnessed a 38% drop from April 9 to 13. In recent days, the price has tried to bounce above a key resistance level of $0.73.
AMBCrypto reported that the resistance zone was stiff and MATIC bulls might not have much luck.
This opinion was justified, and the token’s short-term optimism took a 180-degree turn at $0.751. At press time, the higher timeframe trend was strongly bearish. Investors should be prepared for more losses.
Five month trend line broken
The support for the rising trend line in October was broken on 12 April. The bears gained even more, driving prices below the $0.73 to $0.75 support zone.
For context, this region has operated as a demand zone since November 21, 2023, nearly five months.
The Awesome Oscillator was at -0.22 showing intense downward momentum. The Direction Movement Index also showed a strong ongoing downtrend on the daily chart.
Both ADX (yellow) and -DI (red) were above the 20 mark.
Price action was also undeniably bearish on both the daily and lower time frames. The move below the $0.69 low meant that MATIC is likely headed for the next support zone at $0.5.
The short-term upswing led to an influx of demand
Data from Open Interest showed AMBCrypto that market sentiment has been bearish throughout April. There was some speculative interest in MATIC before the losses began in earnest on April 12.
However, spot settlement fees have seen a sharp downward trend in April. Only in the last three days did it show signs of stabilization. This was encouraging, but probably not enough to reverse the downtrend.
File polygon [MATIC] Price prediction 2024-25
Therefore, we can conclude that short-term demand in the spot market remained rather weak. He gained some strength, but it might not be enough to erase the last losses.
OI continued to fall as speculators stayed on the sidelines waiting for an uptrend.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
This is an automatic translation of our English version.
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