Polygon’s Price Analysis
The recent price chart for Polygon (MATIC) reveals the formation of a head-and-shoulder pattern, indicating a potential downturn in the near term.
- MATIC experienced a decline of more than 20% over the last seven days.
- Selling pressure on the token remained high, accompanied by bearish indicators.
Investors in Polygon (MATIC) faced challenges as the token’s price witnessed a double-digit drop in the past week. The situation may worsen, as a bearish pattern has emerged on MATIC’s chart at the current time.
Current Price Status
According to CoinMarketCap data, MATIC’s price plummeted by over 20% in the last week and over 5% in the past 24 hours. At the time of writing, MATIC was trading at $0.7563 with a market capitalization exceeding $7 billion.
Renowned crypto analyst Ali highlighted the formation of a head-and-shoulders pattern on Polygon’s 4-hour chart. A sustained close below the pattern’s neckline at $0.79 could potentially trigger a 16% correction towards $0.67. However, a reversal in the short term could occur if certain conditions are met.
Market Trends and Analysis
AMBCrypto examined MATIC’s liquidation heatmap to understand investor behavior. The analysis revealed a substantial increase in liquidation on November 20th, coinciding with a price correction triggered when MATIC reached $0.86.
Further examination showed an increase in MATIC’s Supply on Exchanges and a decrease in Supply outside of Exchanges, indicating higher selling pressure. Whales’ confidence in Polygon also decreased, as evidenced by the drop in its supply held by top addresses.
Negative sentiment surrounding MATIC escalated, likely influenced by its bearish price action. The MVRV Ratio for Polygon also declined, indicating a bearish sentiment.
Analysis of Potential Downtrend
AMBCrypto’s analysis of MATIC’s daily chart identified a bearish crossover in its MACD, suggesting a potential downtrend. The token’s price entering a less volatile zone reduces the likelihood of an unprecedented price surge in the near term.
However, there are positive signs as MATIC’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) both showed upticks, indicating a potential trend reversal.
Polygon 2.0 Upgrade
Polygon has an upcoming development that could positively impact MATIC’s situation. The announced plan for Polygon 2.0 involves upgrading MATIC to a new POL token, with the process already initiated on the Ethereum (ETH) mainnet. The completion of this upgrade could be a game-changer for the token.
