Polygon (MATIC) has fallen by 0.22% in the last 24 hours, and 92% of the addresses are out of money. This alarming situation has been exacerbated by the token’s drop to a nine-month low! This is raising concerns among crypto investors and traders. The price of MATIC is currently below the 50 and 200-period moving averages. Generally, this is a sign of a short-term bearish trend. The bearish pressure is palpable, but could we see a trend reversal soon?
The Moving Average Convergence Divergence (MACD) seems to indicate that a bullish crossover could be imminent, despite the current bearish momentum. Moreover, the consolidation around current price levels, combined with a potential bullish MACD crossover, suggests that crypto buyers might be slowly gaining strength. This could be the key to regenerating bullish strength in the altcoin market.
Despite the dominance of bears in the crypto market, entry volumes on exchanges have seen major spikes! A typical indicator of selling pressure as investors move their tokens to exchanges, possibly to sell. However, recent MATIC trends reveal a steady decline in entries, which means immediate selling pressure could be diminishing. For a bullish reversal to gain momentum, market sentiment needs a massive bullish trigger, whether it is related to the network or broader economic trends.
In conclusion, while the current situation for MATIC may seem bleak, technical indicators and trading activities offer a glimmer of hope for a potential bullish reversal. Crypto investors and traders should remain vigilant and closely monitor these developments to navigate these tumultuous waters prudently.
