Upsides Remain Limited as Polygon's MATIC Token Reels From Selling…

polygon matic looks bearish — Image by Ria Sopala from Pixabay

MATIC is one of those rare cryptocurrency tokens which rose back like a phoenix looking almost unaffected by the May crash. But since finding a local top at $2.4 a bit below its all-time high, the Polygon token’s momentum has become entirely bearish.

Bears Have A Serious Edge Over Bulls

MATIC is now amongst the top 20 cryptocurrencies in the world. The native cryptocurrency token of India-based Ethereum scaling solution Polygon has garnered quite a huge following in recent times. Even with the horrific crash last month, it was one of the few tokens to still stand tall a few points away from touching its all-time high again.

After the rebound though, things went south in a cascading fashion. Bulls lost steam, and an immediate round of profit-taking followed. The entire cryptocurrency market’s bearish scenario could be the reason. The daily MATIC/USDT chart shows a series of bearish candles playing spoilsport with the Polygon token. Due to which prices have come down to the $1.3 support level (marked by the 50-day MA line).

matic, Upsides Remain Limited as Polygon’s MATIC Token Reels From Selling Pressure — Incessant Selloffs Led MATIC To Retest $1.3 Support, Source: MATICUSDT on TradingView.com

In the worst case, the sell-off could continue further. In that case, the MATIC/USDT pair could risk dropping way down to the $1 price level (marked by 75-day MA).

Can MATIC Bulls Do Anything?

Well bulls don’t seem to have much options here. To reverse the scenario, buying pressure has to supersede the selling pressure by dragging the Polygon token’s prices to the $1.5 level (marked clearly by the 20-day exponential moving average (EMA).

However, that seems highly improbable has the MACD (Moving Average Convergence Divergence) indicator shows that bears still have a strong grasp over the current market scenario. The ongoing round of selloffs still has some steam left.

News such as the kinds of Mark Cuban taking a stake in the Polygon ecosystem could help a lot. This is the same piece of news that kept bullish momentum alive after the rebound.

The overall selling volume is tapering off. But considering the current scenario it is highly uncertain when bears will lose their grip and bulls will finally take over.