Polygon (MATIC) – Downside risks remain elevatedPosted on Wednesday, February 2 2022 at 9:05 pm GMT+0000
Polygon (MATIC) attempted to recover more lost ground, but its efforts proved fruitless with the price drifting lower after reacting to the 23.6% Fibonacci retracement level of last month drop.
Signals from momentum indicators are currently discouraging. The ROC formed a double top below its downward trendline and crossed back below the zero mark, and the RSI deflected off its trendline in the negative territory. Furthermore, the negative intersection of the 20-day and 50-day simple moving averages is promoting further bearish extensions.
Maintaining its current trajectory below the ascending trendline drawn from the July 19th low, the price will initially combat last week’s bottom of 1.32. A more aggressive decline will reach the October 12th trough at 1.10 and the 1.00 psychological number.
On the other hand, the 23.6% Fibonacci retracement level at 1.72 may continue to deny any new recovery attempts from evolving, in association with the 20-day simple moving average. By breaching that line, bulls will gain further confidence and drive the price towards the section formed by the last month inside high and the 38.2% Fibonacci level at 1.96.
To summarize, Polygon is maintaining a negative profile with sellers aiming to stretch the negative structure.