Polygon (MATIC) has began to stabilise after a collection of bearish streaks over the previous few weeks. The coin has additionally fallen sharply from its 2022 highs and is now buying and selling nicely beneath its three-month development line resistance. Listed below are another details:
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The present set-up is closely beneficial for short-sellers since MATIC has very restricted upside
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The coin will doubtless fall beneath $0.5 although it consolidated above this course of
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MATIC will finally backside at $0.4 or thereabout
Information Supply: TradingView
MATIC: The Brief promoting play
After durations of bearish sentiment round MATIC, the coin managed to ascertain a consolidation interval after overcoming the $0.5 resistance. There have been some hopes that this consolidation may set off a decisive bullish break. Nonetheless, because the broader crypto market slows, it doesn’t seem to be there may be sufficient momentum to push MATIC additional.
As a substitute, the coin will doubtless expertise some sharp fall. We count on the alt to initially lose the $0.5 help earlier than the beginning of buying and selling subsequent week. As soon as this occurs, there will probably be additional draw back. MATIC will in all probability backside at $0.4 earlier than the bears ease a bit. It will characterize a fall of round 35% from the present value.
So, with this set-up, there isn’t any doubt short-sellers may have a area day. Essentially the most excellent entry value for a brief commerce will probably be $0.6. Nonetheless, you possibly can nonetheless enter after MATIC loses The $0.5 and trip the downward wave in the direction of $0.4.
The place does MATIC go from right here?
The weak point that now we have seen in MATIC over the previous few weeks was anticipated. However this has acquired nothing to do with the mission and its future. It’s merely a mirrored image of total sentiment available in the market.
We don’t assume there may be any signal that sentiment is about to enhance. As such, MATIC will doubtless stay suppressed beneath $0.5 for at the least one other month.