Polygon (MATIC) has began to stabilise after a sequence of bearish streaks over the previous few weeks. The coin has additionally fallen sharply from its 2022 highs and is now buying and selling properly under its three-month pattern line resistance. Here are another information:
The present set-up is closely beneficial for short-sellers since MATIC has very restricted upside
The coin will doubtless fall under $0.5 despite the fact that it consolidated above this course of
MATIC will finally backside at $0.4 or thereabout
Data Source: TradingView
MATIC: The Short promoting play
After intervals of bearish sentiment round MATIC, the coin managed to determine a consolidation interval after overcoming the $0.5 resistance. There have been some hopes that this consolidation may set off a decisive bullish break. However, because the broader crypto market slows, it doesn’t seem to be there’s sufficient momentum to push MATIC additional.
Instead, the coin will doubtless expertise some sharp fall. We anticipate the alt to initially lose the $0.5 help earlier than the beginning of buying and selling subsequent week. Once this occurs, there might be additional draw back. MATIC will most likely backside at $0.4 earlier than the bears ease a bit. This will characterize a fall of round 35% from the present worth.
So, with this set-up, there is no such thing as a doubt short-sellers may have a subject day. The most superb entry worth for a quick commerce might be $0.6. However, you’ll be able to nonetheless enter after MATIC loses The $0.5 and experience the downward wave in the direction of $0.4.
Where does MATIC go from right here?
The weak point that we’ve seen in MATIC over the previous few weeks was anticipated. But this has bought nothing to do with the venture and its future. It’s merely a reflection of total sentiment out there.
We don’t suppose there’s any signal that sentiment is about to enhance. As such, MATIC will doubtless stay suppressed under $0.5 for at the least one other month.