.jpg)
- Polygon noticed the bearish market structure and was prepared for further losses
- The rise in passive trading warned of a wave of selling pressure
ribbed [MATIC] Cryptocurrencies saw an intensification of the downtrend in June. It started with the price falling below the 2-month range on June 11. On June 16, the lows at $0.621 were retested as resistance.
This has strengthened bear holdings and paved the way for a fresh move south. At the time of writing, the $0.59 level is the next major resistance. Are bulls expecting more losses and staying neutral in the market?
The next level of HTF support was also psychologically important
Source: MATIC/USDT on TradingView
With $0.59 turning into resistance, $0.5 is the next psychological and technical support level. This was significant in September and October 2023 and triggered the massive rally that saw the Polygon cryptocurrency reach highs of $1.29 in May 2024.
Therefore, a move to this support in search of liquidity is expected. The market structure on the daily time frame is strongly bearish.
Hence, the $0.5 level may not reverse the downtrend immediately, but perhaps stop it temporarily.
The CMF indicator was at -0.03, and traders can wait for it to fall below -0.05 to indicate significant capital outflows from the markets. The Relative Strength Index was at 33, indicating a strong downtrend in progress.
If the indicators continue to decline, this will negatively affect the chances of an upward defense of the $0.5 support level.
A rise in a dormant cycle signals the next price movement
source: saint
On June 24, passive trading saw a significant spike. A similar percentage jump was last seen in mid-April when prices tested the $0.6 support several times.
is reading Polygon [MATIC] Predict the price 2024-25
This signaled that Polygon crypto buyers had capitulated, and a similar scenario was playing out again.
This may lead to deeper price declines. The MVRV ratio was very negative, indicating that short-term buyers were at a loss. Any bounces for these traders will likely be sold to break even, making recovery more difficult.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and represents the opinion of the writer only.
