MATIC Price Dip, Investors Must Be Wary of These Possible Outcomes -Breaking
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© Reuters. MATIC Price Drop, Investors Should Be Aware of these Possible Outcomes- Polygon’s MATIC (Polygon) created a six-month rising wedge that reached its ATH on December 27, 2021 at $2.93
- MATIC keeps going downhill even after it reaches its ATH.
- Investors/traders should be vigilant about movement, as MATIC shares an incredible 90% 30-day correlation to the King coin.
Polygon (MATIC), which was in long-term uptrends, formed a six month rising wedge and reached its all-time high of (ATH) December. MATIC’s performance has been erratic since then. It also had a strange relationship with the EMA ribbons.
(Source: TradingView)
The current fall wedge drop is approaching the $0.93 long-term floor. Bulls are keen to end the streak of bearish candlestacks on the daily charts. MATIC trades currently at $0.941, down 5.79% and with $548 million in 24-hour volume.
Moreover, MATIC’s price is open to hitting another 21% to retest the range low at $0.745. If the selling tension rises a lot, Polygon may be able to fall lower.
Market makers could use this recession to close the inefficiency of the market known as fair value gap, which is $0.467. This would bring the overall downfall to 52%.
Surprisingly enough, IntoTheBlock’s Global In/Out of the Money (GIOM) model backs this bearish viewpoint. This index reveals that around 30,000 addresses bought nearly 1.8 billion MATIC tokens at an average price of $0.473 and are “Out of the Money.”
Source: The Global In/Out Currency
These investors can support the drop below this threshold and could buy additional shares to reduce selling pressure.
MATIC might see a quick revival due to the combination of the falling wedge structure and bullish divergence potential on the RSI. A close above the current pattern would expose the altcoin to the boundaries of its EMA ribbons in the $1.2 – $1.3 range.
The traders/investors need to keep an eye on Bitcoin’s movement, as MATIC shares a stunning 90% 30-day correlation.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. This article is not intended to be used as investment advice. CoinQuora advises its users to research cryptocurrency before making any investment.
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