Polygon price has been on downward momentum for two weeks now. Risk aversion continues to weigh on cryptocurrencies amid the heightened rate hike bets. The crypto fear & greed index is at an extreme fear level of 23. The fear level has intensified from last week when the index was at 29.
Since hitting its all-time high of 2.9236 two weeks ago, MATIC has dropped by about 26.90%. On Saturday, it dropped to its lowest level since mid-December at 1.8948 before bouncing back. At the time of writing, it was up by 1.18% at 2.1404.
On a four-hour chart, Polygon price is trading along the 25-day EMA and below the 50-day EMA. It is also below the long-term 200-day EMA.
Notably, the formation of the bearish head-and-shoulder pattern towards the end of the past year signalled further losses. The death cross that formed over the weekend is a sign that the altcoin may remain under pressure in the short term. The pattern forms when a short-term EMA (50-day EMA) crosses the long-term EMA (200-day EMA) to the downside.
Based on these technical indicators, Polygon price will likely experience some resistance along the 50-day EMA at 2.2249. On the lower side, it may find support at 2.0500, which would result in range-bound trading. Below that level, 1.9685 will be a support level to look out for.
For the crypto to record a trend reversal, there will need to be enough bullish momentum to push it to the head-and-shoulder neckline at 2.5000. However, it will likely encounter some resistance at around 2.4000.
This post was last modified on Jan 10, 2022, 08:32 GMT 08:32