MATIC Price Analysis: MATIC Downtrend Persists Aiming For $0.3

2 Min Read
Last Updated July 23rd 2021
  • MATIC price could tumble massively if support at $0.7 and the 200 SMA shatters.
    • Weak on-chain levels, especially in the network growth metrics, hints at the downtrend remaining steady.
    • The IOMAP model highlights massive support at $0.74, likely to prevent losses from continuing to $0.7.

    Polygon has not found leeway to put a recovery mission into play. The dominating downtrend continues to wreak havoc while most take a hands-off approach retreating to the sidelines. Losing support at $1 has proved to have been detrimental to the bulls, reducing any chances of recovery.

    At the time of writing, Polygon trades around $0.78 amid intensifying overhead pressure. A descending parallel channel’s middle boundary seems to be holding bears at bay. However, various technical indicators validate the possibility of declines soaring under $0.7 and toward $0.3.

    Polygon Sinks Profoundly Into The Bears Hands

    MATIC price will likely break down according to a sell signal sent by the Moving Average Convergence Divergence (MACD) indicator. The bearish outlook came into the picture when the 12-day exponential moving average (EMA) crossed below the 26-EMA. In addition to that, the MACD accentuates the bearish outlook by diving deeper into the region below the mean line.

    Similarly, an impending death cross pattern could see Polygon tumble even further. This highly bearish pattern will come into play when the 50-day Simple Moving Average (SMA) crosses under the 200-day EMA. Realize that MATIC will be forced to consolidate at a much lower price, especially if support at $0.7 crumbles.

    MATIC/USD daily chart

     MATIC/USD daily chart 071921

    According to Santiment, Polygon’s network growth has been on a downward roll for several months now. When tracked on a 30-day moving average, nearly 2,000 addresses joined the network on July 18, down from 3,700 on June 29.

    A consistent decline in the number of addresses joining the network is a massive bearish signal. It infers that adoption is reducing over time, and bulls lack the power to sustain the uptrend.

    Polygon network growth on-chain model

     MATIC/USD santiment chart 071921

    Looking at the other side of the fence

    The IOMAP model by IntoTheBlock highlights an immense buyer congestion zone between $0.74 and $0.76. The 693 addresses that previously purchased 1.92 billion MATIC could invalidate the breakdown to $0.7 and $0.3 by absorbing the selling pressure.

    Polygon IOMAP chart

     MATIC/USD volume chart 071921

    On the upside, the lack of a massive resistance zone suggests that bulls could resume the uptrend following a slight push on Polygon. A break above $0.8 may trigger more buy orders in support of uplift to $1.

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