MATIC may be on its way to $1.21 local bottom, after the market lost three straight days. At the time of publication, the market was 11.4% below the previously mentioned level.
The price of Polygon, (MATIC), moves within a narrow range on Tuesday. MATIC’s price has fallen by 35 percent since February 16. A triple bottom at $1.40 indicates that this trend is about to change.
MATIC Falls Near the Bottom
Today, MATIC/USD traded at $1.42. This is down by 0.31% from the previous day. With a trading volume of $1758,620.513 over 24 hours, the 16th most valued cryptocurrency according to market capitalization saw an increase of greater than 100%.
MATIC/USD Trades starting at $1.4. TradingView
Selling pressure rose as MATIC breached the neckline for the outlined trade pattern. As the price drops below 50 EMA and 200 EMA, sellers continue to sell their positions. At $1.40 the downside gains some support.
If the price is able to break through support levels, then the immediate downside goal would be $1.03. In September, the last time these levels were observed was in October.
Another sell-off could be possible, as it already occurred twice within the past 45 days. 249 Million MATIC valued at $339M were exchanged on the stock exchanges in the week before the crisis of 13 January.
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Are Investors able to Hold On?
Even though around 100,000,000 MATIC was bought back over the years, current investors avoid selling despite falling prices. However, it’s impossible to say if investors would continue to HODL if MATIC fell more.
Polygon exchanges’ balance | Source: Santiment
Within 20 days, investors have seen their losses increase from 30% to 60%. As a result, it wouldn’t be shocking if MATIC holders ran out of patience shortly.
Social moods are not leaning toward the bears in all media. This is a positive sign. Santiment reports that investors feel more optimistic right now than they did in the past four months. Santiment also reported that this week saw first signs of investor optimism. The overall mood in February had been negative, up to February 17.
Polygon’s development accomplishments may have a lot to do with this positive mood, especially because it is one of the largest DeFi and NFT hubs in the world, with about $4 billion in TVL.
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Unsplash image and chart by TradingView.com.