Polygon (MATIC) has entered a part of consolidation, hovering simply above the essential $0.50 mark. The coin’s current retracement to June lows has garnered vital consideration from bullish traders, even because the broader crypto market stays hounded by uncertainties and worth plunges.
With the cryptocurrency market experiencing a notable downturn over the previous week, Polygon’s native token, MATIC, has not escaped unscathed.
The token’s worth has witnessed a decline of almost 19% over the span of seven days, additional amplified by a 4% drop within the final 24 hours alone. The present CoinGecko-listed worth stands at $0.547.
MATIC worth motion immediately. Supply: Coingecko
The current state of MATIC at $0.54 marks its lowest valuation this yr, with year-to-date lows simply shy of the June benchmark of $0.59.
The current downturn is carefully linked to the broader market crash, throughout which Bitcoin suffered a plunge to $26,000, triggering almost $2 billion in liquidations.
Technical Indicators Sign Warning For MATIC
Technical indicators echo the prevailing bearish sentiment surrounding MATIC. The Relative Power Index (RSI) notably retreated to the oversold territory on August seventeenth and continues to linger there. This persistent oversold situation underscores the continued promoting stress that has but to abate.
MATIC market cap at $5.1 billion immediately. Chart: TradingView.com
Equally, the Chaikin Cash Stream (CMF) has maintained a place under zero, indicating a subdued inflow of capital. This development accentuates the bearish outlook for MATIC within the spot market.
Navigating The Highway Forward For Polygon
Regardless of its current dip, MATIC encountered a measure of stabilization on the bullish order block (OB) located above the $0.50 stage.
Notably, this stage aligns with the June lows, which have traditionally facilitated profitable rebounds upon retesting. This downturn has visibly impacted traders, resulting in rising losses of their portfolios.
Nonetheless, the general energy of Bitcoin—whose efficiency has been lackluster—may doubtlessly hinder MATIC’s capacity to stage a strong restoration.
MATIC seven-day worth motion. Supply: CoinMarketCap
Because the crypto market grapples with its current setbacks, the destiny of MATIC stays entwined with the broader trade developments.
Buyers are keenly expecting indicators of a considerable reversal in MATIC’s fortunes, gauging whether or not it could possibly efficiently break away from the gravitational pull of the present market downtrend.
Within the midst of this difficult atmosphere, MATIC fanatics and market analysts alike are carefully monitoring the coin’s technical indicators and its capacity to carry above the essential assist stage of $0.50. Solely time will inform whether or not Polygon’s MATIC can climate the storm and reclaim its upward trajectory.
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Featured picture from Cointribune