The selling pressure is increasing this week with increasing liquidations in the broader market. Following last week’s recovery, Polygon shares the bearish trend with other top altcoins. As the supply grows, the MATIC price drops under $0.50 and warns of a $0.38 retest.
MATIC Price Performance
Following the bullish breakout of a falling channel pattern, the MATIC price failed to surpass the $0.60 peak. Last week, the altcoin’s price jumped 27.43%, resulting in a massive bullish engulfing candle in the one-week chart.
However, the increased market volatility led to a quick downfall in Polygon. The growing bearish momentum quickly undermines last week’s recovery run and accounts for an 18.86% drop this week.
Furthermore, the MATIC price lost dominance over the $0.50 psychological mark, and the crypto price today is at $0.4256. In the daily chart, the MATIC price action reveals a series of five bearish consecutive candles, testing the broken resistance trendline.
Onchain Support For Polygon
Despite the bearish price action, the on-chain platform IntoTheBlock shows mostly bullish signals for Polygon. With the network growth of 0.30%, concentration increased by 0.18%, and 11% surge in large transactions, giving three bullish on-chain signals.
While the 14% drop in the money segment puts a bearish spot. The exchange signals are bullish, with a 4.7% surge in bid-to-ask volume imbalance. Hence, with five bullish and one bearish indicator, the platform gives a buy signal.
However, a key notable point is that only 3% of holders are making money at the current price, and large holders concentrate 85% of the volume.
Technical Indicators:
RSI: The daily RSI line shows a downtick from the overbought boundary line to 42% as it breaks under the halfway line and the 14-day SMA.
EMA: The 50-day and 200-day exponential moving averages maintain a bearish trend following the death cross in April 2024.
Will Polygon Price Drop Under $0.40?
With the bearish continuation, the MATIC price could slip back into the falling channel pattern and put $0.38 at risk. A bearish breakdown could result in an extended fall to the support trendline near $0.3470.
However, on a bullish front, a double-bottom reversal from the $0.38 support level is a potential hope for buyers. As it remains a crucial demand zone known for reverting the MATIC price, the bullish divergence in RSI will be a positive indicator.
Also, read our Arbitrum (ARB) Price Prediction 2024-2030
