Polygon (MATIC) and Cardano (ADA) Prices Take a Dive: What’s Behind the Drop?

Polygon (MATIC) and Cardano (ADA) Prices Plunge: Key Patterns and Analysis

Both Polygon (MATIC) and Cardano (ADA) have been affected by the recent downturn in the cryptocurrency market, which also saw significant drops in Bitcoin and Ethereum prices. According to a recent technical analysis by altFINS, several key patterns and trends can explain the bearish performance of these altcoins.

Polygon (MATIC) Faces Channel Down Pattern and Resistance at $0.75

Polygon (MATIC) is currently trading within a Channel Down pattern. The cryptocurrency recently bounced off the channel support at $0.60 and is now approaching a significant resistance area, including the channel resistance trendline and horizontal resistance at $0.75. This resistance level will be a critical test for MATIC’s price direction.

Trend traders are advised to wait for a breakout above the $0.75 resistance level before initiating a trade. A successful breakout could push MATIC towards the next resistance level of $0.90. Setting price alerts can help traders monitor significant price movements.

Trading the Channel Down Pattern

When trading the Channel Down pattern, traders can take advantage of the price fluctuations between the channel trendlines. If the price breaks through the channel’s trendlines, either on the upper or lower side, it can move rapidly in the direction of the breakout. This event, known as a complete pattern, could present a trading opportunity.

Polygon (MATIC) Trend and Momentum Analysis

Short-term and medium-term trends for MATIC are currently downward, while the long-term trend remains neutral. The momentum indicators show mixed signals, with the MACD Line above the MACD Signal Line (bullish), but the RSI below 45 (bearish).

  • Nearest support zones for MATIC: $0.60 and $0.50
  • Nearest resistance zones for MATIC: $0.75, $0.90, and the $1.00 – $1.05 range

Cardano (ADA) Trades in a Similar Channel Down Pattern

Cardano (ADA) is also exhibiting mixed trends, with its price following a Channel Down pattern. Similar to MATIC, traders can initiate trades within the channel trendlines or when a breakout occurs.

Cardano (ADA) Trend and Momentum Analysis

For ADA, the short-term and medium-term trends are bearish, but the long-term trend is in an uptrend. The momentum indicators also reflect mixed signals, with the MACD Line above the MACD Signal Line (bullish), but the RSI below 45 (bearish).

  • Nearest support zones for ADA: $0.46 and $0.35
  • Nearest resistance zones for ADA: $0.57, $0.65 – $0.68 range, and $0.80

Factors Contributing to the Price Plunge

The recent price plunge in MATIC and ADA can be attributed to several factors:

  • Overall bearish market sentiment: The broader cryptocurrency market is experiencing a downtrend, which impacts most altcoins.
  • Profit-taking: After significant gains, some investors may be taking profits, leading to increased selling pressure.
  • Regulatory concerns: Ongoing regulatory uncertainty about cryptocurrencies contributes to the bearish sentiment, making investors cautious.

Traders should stay informed about market developments and apply appropriate trading strategies, such as setting price alerts and understanding chart patterns. This approach can help traders make informed decisions and potentially capitalize on future price movements.