Polygon Experiences Massive Selling Pressure; MATIC Might See Some Relief Here
- MATIC retained bullishness until the recent flip of mid-range to resistance.
- Can we expect a deviation or declines to rage lows?
Polygon (MATIC) exhibited a bullish narrative on its price charts within the previous week. That came after the alternative token soared beyond the crucial $0.88 resistance. Nevertheless, the bullishness failed to last.
The past few days saw MATIC breaking its optimistic market structure, opening the chances of further declines on the charts. The latest report indicated that Polygon saw a declining interest in decentralized applications (dApps). The narrative emerged regardless of the many collaborations that Polygon inked.
Market Structure Bearish Again
MATIC maintained its trading activities in the range it formed in July. Meanwhile, the range stretched between $0.72 and $1.02, with a $0.88 mid-range. This area served as resistance and support on several instances and emphasized the sincerity of the range.
The past seven days saw MATIC overpowering $0.88 and flipping the mark to support. That had the alternative token forming a 4hr bullish order block. Analysts expected this area to offer massive support, but MATIC bears dominated over the last few days, establishing their regime.
Bears forced a 12hr session closing beneath $0.88. That saw the price break the bullish block and triggered bearish tendencies in the market structure. The RSI (Relative Strength Index) dropped beneath the 50-neutral, showing momentum started to favor MATIC sellers again.
Meanwhile, the OBV (On Balance Volume) remained somewhat flat over the past few months, highlighting the chances of an extended range. Southward movements can see bullish reactions at $0.72 and $0.79 in the coming week or two.
Increased Network Growth in Gains
October saw the network growth index surging, printing multiple higher lows. That was visible as new addresses joined the platform (each day), showing increasing user adoption. Moreover, the development activity witnessed a dip over the past few weeks, though the same metric recorded peaks & troughs within the last three months.
That confirmed positivity for MATIC and long-term investors having less worry about this index. Bitcoin hovered beyond a critical support level around the $20,000 value area, and the upcoming FOMC news might trigger massive volatility. Risk-averse investors can chill and wait.