This week, selling pressure is increasing amid rising liquidations in the market. Following last week’s recovery, Polygon shares a bearish trend with other top altcoins. MATIC price has fallen below $0.50, warning of a retest of $0.38.
MATIC Price Performance
Following the bullish breakout of a falling channel pattern, the MATIC price failed to surpass the $0.60 peak. Last week, the altcoin’s price jumped 27.43%, resulting in a massive bullish engulfing candle in the one-week chart. However, the increased market volatility led to a quick downfall in Polygon. The growing bearish momentum quickly undermines last week’s recovery run and accounts for an 18.86% drop this week. MATIC price lost dominance over the $0.50 psychological mark, and the crypto price today is at $0.4256. In the daily chart, MATIC price action reveals a series of five bearish consecutive candles, testing the broken resistance trendline.
Onchain Support For Polygon
Despite the bearish price action, the on-chain platform IntoTheBlock shows mostly bullish signals for Polygon. With the network growth of 0.30%, concentration increased by 0.18%, and 11% surge in large transactions, giving three bullish on-chain signals. However, a 14% drop in the money segment puts a bearish spot. The exchange signals are bullish, with a 4.7% surge in bid-to-ask volume imbalance. Hence, with five bullish and one bearish indicator, the platform gives a buy signal. It is notable that only 3% of holders are making money at the current price, and large holders concentrate 85% of the volume.
Will Polygon Price Drop Under $0.40?
With the bearish continuation, the MATIC price could slip back into the falling channel pattern and put $0.38 at risk. A bearish breakdown could result in an extended fall to the support trendline near $0.3470. However, on a bullish front, a double-bottom reversal from the $0.38 support level is a potential hope for buyers. As it remains a crucial demand zone known for reverting the MATIC price, the bullish divergence in RSI will be a positive indicator.
Polygon's bear cycle continues to put pressure on MATIC price, signaling the possibility of further decline. However, support zones may offer a chance for a reversal.
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