Polygon (MATIC) has began to stabilise after a collection of bearish streaks over the previous few weeks. The coin has additionally fallen sharply from its 2022 highs and is now buying and selling nicely beneath its three-month pattern line resistance. Here are another info:
The present set-up is closely beneficial for short-sellers since MATIC has very restricted upside
The coin will probably fall beneath $0.5 although it consolidated above this course of
MATIC will ultimately backside at $0.4 or thereabout
Data Source: TradingView
MATIC: The Short promoting play
After durations of bearish sentiment round MATIC, the coin managed to determine a consolidation interval after overcoming the $0.5 resistance. There had been some hopes that this consolidation may set off a decisive bullish break. However, because the broader crypto market slows, it doesn’t appear to be there may be sufficient momentum to push MATIC additional.
Instead, the coin will probably expertise some sharp fall. We anticipate the alt to to start with lose the $0.5 help earlier than the beginning of buying and selling subsequent week. Once this occurs, there shall be additional draw back. MATIC will most likely backside at $0.4 earlier than the bears ease a bit. This will characterize a fall of round 35% from the present worth.
So, with this set-up, there is no such thing as a doubt short-sellers may have a area day. The most best entry worth for a brief commerce shall be $0.6. However, you possibly can nonetheless enter after MATIC loses The $0.5 and journey the downward wave in direction of $0.4.
Where does MATIC go from right here?
The weak spot that we’ve seen in MATIC over the previous few weeks was anticipated. But this has bought nothing to do with the mission and its future. It’s merely a reflection of total sentiment out there.
We don’t assume there may be any signal that sentiment is about to enhance. As such, MATIC will probably stay suppressed beneath $0.5 for a minimum of one other month.
