- The bearish mood surrounding tokens has increased.
- $0.93 was the next important support level for MATIC.
polygon [MATIC] It has broken above key resistance zones over the past few days, hinting at further bullish gains. However, things quickly changed as MATIC’s value plummeted on April 1st. Will the MATIC bears be in control early in the second quarter?
Polygon investors are shocked
Popular cryptocurrency analyst World of Charts recently said, Tweet Highlighted the fact that MATIC successfully broke through the resistance level. The same was true when the price he rose towards $1.
If MATIC tests that level, the token price could have reached $1.01. However, it did not reflect in reality as the token witnessed a price correction.
according to coin market cap, MATIC has fallen over 3% in the past 24 hours alone. At the time of writing, it is trading at $0.9659, making it the 17th largest cryptocurrency with a market capitalization of over $9.5 billion.
The price decline also affected social indicators. Polygon’s social volume increased, reflecting the crypto space buzzing about the token.
The bearish sentiment around it also increased significantly, which was evident from the significant drop in its weighted sentiment.
AMBCrypto then checked Hyblock Capital’s data to understand the cause of this downward trend. Our analysis reveals that liquidations spiked when MATIC’s price reached $1.
High liquidity means high selling pressure, which generally causes prices to fall. The worst part was that MATIC failed to test the support level around $0.97 and fell below. This indicates that the price of the token may fall further.
Will Polygon’s downward trend continue?
To understand whether the downtrend will continue, AMBCrypto data. We found that MATIC’s exchange reserves are increasing. This means there is increasing selling pressure on the token.
Other bearish indicators include daily active addresses and transaction volume, which have also declined recently.
The technical indicator MACD showed a clear bearish advantage in the market. Its Relative Strength Index (RSI) recorded a sharp decline.
read of polygons [MATIC] price prediction 2024-25
In addition to that, Polygon’s Chaikin Money Flow (CMF) has followed a similar downward trend, suggesting that the price decline is likely to continue.
If the downtrend continues, investors should keep an eye on the $0.93 resistance zone, as a sharp drop below it could be concerning.