Digital assets that shed 50% on their respective charts can witness more declines. Polygon has maintained continued declines since the last session of March. The bearish run saw the alt flipping $1.2 to a supply region from demand territory during the past month.
Moreover, the asset’s unique addresses have plunged by 85%. Whale transfers were also on downside trends. Such developments confirmed a weakened network, and MATIC price reflected the narrative.
12Hr Timeframe
The downside phase comprised multiple lower lows and lower highs on the 12hr chart since March’s late sessions. Meanwhile, the mid-March leg up had Polygon token surging towards $1.71 from the lows at $1.36.
The optimistic actions saw MATIC breaking beyond a previous lower peak, signaling a bullish market. Nevertheless, bulls could not protect the support barrier at $1.58. That triggered crashes through the footing in April’s early sessions.
May had a similar narrative when the alternative token plummeted beneath the demand zone at $1.2 and retested the area as resistance. Meanwhile, the $1 value area could not last as a support level.
Bears intensified their actions on the charts, escalating the downtrend despite some lower timeframe upticks. The 55-MA and 21-MA served as resistance zones for the last two months. The token should climb beyond the 55SMA and $0.75 for enough strength to overcome the previous lower peak.
Reasoning
The Relative Strength Index formed multiple higher highs as MATIC price printed several lower peaks on the chart. That meant an impending concealed bearish divergence, suggesting downward continuation. While publishing this content, the RSI stayed below the 50-neutral and confirmed dominant bearish strength within the marketplace.
Also, the on-balance volume saw a steady plunge in May, and though OBV printed higher lows within the last few weeks, the alt didn’t have massive demand to support trend reversals to the upside. The Chaikin Money Flow stayed beyond the +0.05 mark, indicating substantial capital flow towards the marketplace.
Final Thought
MATIC’s bias remained bearish, while indicators were yet to confirm impending trend reversals. The concealed bearish divergence confirmed the continuation of the prior downside trend in the coming days or weeks.
Editorial credit: FellowNeko / shutterstock.com
