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Crypto analyst Ali Martinez has stated that the price of cryptocurrency Polygon (MATIC) has dropped to $0.77, causing it to fall below a crucial support level. Martinez emphasized that most addresses have been accumulating, with a total of 4.13 billion MATIC. The highlighted level mentioned by the analyst is located in the $0.84 to $0.86 range.
Possibility of MATIC Sell-Off
Ali Martinez mentioned that those who bought in the aforementioned range may opt for a sell-off to avoid further losses. According to the analyst, this could cause further price decline for the cryptocurrency MATIC. The analyst also revealed the potential levels of this decline.
The buying volume occurred in the $0.84 to $0.86 range, with most buyers entering at this level. Considering the accumulation in this range, it is important to examine the trading volume as well.
The 24-hour trading volume has decreased by 42%. The bearish sentiment of MATIC influenced the market from November 20th to 22nd. During this period, MATIC dropped from $0.85 to $0.72. However, with the recent buying pressure, the price is now at $0.77.
No Sign of Bullish Dominance
While writing the article, the MACD indicator was in the negative zone, indicating a continued decline. Additionally, the Chaikin Money Flow (CMF) indicator was also in the negative zone, interpreted as a sign of continued selling pressure.
The Relative Strength Index (RSI) also joined the downward trend. At the time of writing, the RSI was at 45.34. The inability of the RSI value to surpass the midpoint of 50.00 indicates that bears could take advantage of the momentum and halt the upward trend. This would mean a price below $0.70 for MATIC.
The Directional Movement Index (DMI) also supports this decline. At the time of writing, the +DMI (green) was at 15.34 and the -DMI (red) was at 24.61. The difference in the DMIs indicates that sellers are currently outweighing buyers. Additionally, the Average Directional Index (ADX) was at 31.11, signaling a strong directional movement in favor of bears.
If the trend continues as analyzed above, MATIC may not surpass the accumulation range of $0.84 to $0.86 in the short term. Therefore, investors may need to exit their long positions for the token.
