Polygon (MATIC) has plunged nearly 3% within the past day and waver in a 2nd consecutive bearish session near $2.033. Meanwhile, MATIC’s trading volume declined by 28.77%, hovering at $2,138,406,422 today. Reducing trading volume isn’t a lucrative signal for MATIC bulls as it indicates deeper price retracements.
Polygon Price Might Lose 14% to $1.75
MATIC/USD trades near $2.033 at this publication. Moreover, the altcoin seems to have created an ascending channel on the daily price chart. An ascending parallel pattern is a highly bullish formation formed after a token registers multiple higher lows and higher highs, indicating an uptrend.
For that reason, MATIC may have to remain inside the rising channel to continue climbing. That way, a daily close beyond the closest resistance by the $2.14 mark might witness MATIC flying to tog the prevailing chart pattern’s middle boundary around $2.224.
Further price upswings may see the alternative coin climbing above the psychological level of $2.50, tagging the rising channel’s upper boundary at $2.697. The MACD’s position beyond the zero line and as Polygon remains inside the climbing channel authorizes MATIC bullish picture.
MATIC/USD Daily Price Chart
Despite the above bullish narrative, the daily chart has its technicals suggesting an extended price retracement in the short term. For instance, MATIC has registered lower lows and lower highs since 7 December.
Moreover, the down-sloping movement by MACS indicated bearish sentiment in Polygon’s network. Also, the indicator recently presented a sell Polygon sign on this daily chart. That came on 15 December when the MACD line crossed beneath the 12-day exponential moving average, suggesting a bearish outlook.
Also, the reducing daily trading volume and RSI’s downward move show bear commitments to drag Polygon lower.
If MATIC fails to maintain beyond the vital level of $2.0, it will fall to hit the 50 Simple Moving Average at 41.885. A drop under the mark might catalyze massive selling pressure that might have MATIC falling towards the ascending channel’s lower border around $1.75. That would represent a 14.49% fall from MATIC’s current price.
As bearishness clamp the overall crypto space, digital assets will likely lose value before climbing again. That increases the chances of an optimistic outlook in the Polygon market. Sudden bullishness in the crypto space can see the alt invalidating the downward trip.