Polygon (MATIC) resumes downside; watch this support
Santiment data shows a surge in development activity at Polygon. Still, social engagement fell last month. The chart shows that MATIC was quickly rejected at the $0.94 resistance.
At the time of publishing this blog, MATIC’s momentum is favoring sellers. Meanwhile, if Bitcoin bulls rise above $19.40, this could quickly turn around. Can Polygon’s native token topple support at $0.77 or see more plummet to $0.67?
Polygon 4 Hour Schedule
The 4-hours chart shows key support at $0.77. This area witnessed several price tests in August. Each time, MATIC buyers rejected the shorts. The bulls sparked a massive surge to $0.94 on the last trading day of August. This area acted as an important resistance level in early August before the bulls were forced to break out.
At the time of publishing this article, MATIC retested the $0.77 support as resistance. This reflects buyer exhaustion over the past few days. The RSI (Relative Strength Index) (on the four-hour chart) is still below the 40 level, showing significant downside momentum.
Polygon 1 hour time frame
MATIC has taken the area of substantial liquidity above resistance at $0.77 over the past few days, indicating that the lower time frame stance remains bearish. This means that any price rally will tend to sell. The previous two days saw a huge sell-off between $0.75 and $0.77.
Furthermore, the altcoin identified support at $0.72. The last time MATIC tested this level was in late July. Therefore, matching the bearishness on the four-hour chart, shorter time frame investors may join the downside to $0.722 before hitting another support area from mid-July at $0.677.
Polygon bulls should turn $0.77 into a foothold to remove bearish sentiment. Also, the hourly RSI remains below 50 neutral but above 40. This means that the momentum was slightly in favor of sellers during the period of this publication.
The A/D (advance/distribution) line recorded gains in the last few days after bouncing to retest $0.77 as resistance. DMI (Directional Movement Index) indicates that ADX (Average Directional Index) and –DI are over 20. This confirms the huge bearishness.
If the FOMC confirms the expected rise, the next day or two could witness a recovery in Bitcoin. This could turn bearish sentiment in the market to bullish soon. Meanwhile, traders can watch for selling opportunities until Polygon (MATIC) surges above $0.77.