MATIC Price Plunges, Have the Bulls Finally Lost Control?

• MATIC witnessed a decline in bullish momentum and has lost hold of the $0.74 psychological support.
• Buying pressure was weak as the CMF hovered around the zero line.
• Traders might likely short/sell MATIC in the near term since the 50 EMA crossed over the 20 EMA.

Polygon (MATIC) brief dip below $0.78 has turned out to be an event that has lasted a whopping five days. Over the last 24 hours, the altcoin had lost 2.32% of its value. But its last 30 days’ performance was controlled by the bulls where MATIC increased by 6.61%.

Currently, the MATIC/USD 4-Hour chart shows that the altcoin was hovering around a tight support zone at $0.71. Due to decreased demand, MATIC’s buying strength has been cut off. This indicates bearish dominance around $0.72.

For MATIC to regain bullish momentum, the price must rise above the $0.74 psychological level. But if selling pressure outweighs demand, then the recovery attempt could be quenched.

Furthermore, bears have pushed down bullish control, as indicated by the Awesome Oscillator (AO). At press time, the AO was -0.0302.

The AO, being in the negative territory, indicates that the 5-period Moving Average (MA) was less than the 34-period Moving Average (MA). Therefore, bears can gain complete control of the price action unless the 5-period MA overturns the authority of the 34-period MA.

However, traders might need to watch out for the Chaikin Money Flow (CMF) before confirming the MATIC price strength. At press time, the CMF was 0.02. Although the indicator was above the zero line, the closeness to the region was a sign of weakness of buying pressure in the market.

Like the CMF, the Moving Average Convergence Divergence (MACD) showed that MATIC’s downward momentum could increase. At the time of writing, the MACD was -0.0022. This negative value indicates that 12-day Exponential Moving Average (EMA) was below the 26-day EMA.

On another look at another set of EMAs, the 4-hour chart revealed that the 50 EMA (yellow) had crossed over the 20 EMA (blue). This signals a bearish crossover. So, traders’ likely position might be to short/sell MATIC in the short to intermediate term.

For MATIC to revert to bullish momentum, then bulls need to increase demand such that it overrides bearish dominance at $0.72. However, the reversal could be unlikely since buyer exhaustion was glaring.

In conclusion, the next few days could see MATIC fall further. Unless, the broader market, led by Bitcoin (BTC) revives, then the altcoin could continue its fall from the crest.

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.