MATIC is on the verge of hitting its local bottom of $1.21, as the market has lost three days in a row. In fact, it was only 11.4% away from the aforementioned level at the time of publication.
On Tuesday, the price of Polygon (MATIC) moves in a narrow range. Since February 16, MATIC has been on a steady downward trend, with a 35 percent drop. The creation of a triple bottom near $1.40 signals that the present trend will be reversed.
MATIC Falls Close To Bottom
MATIC/USD is now trading at $1.42, down 0.31% on the day. The 16th most valuable cryptocurrency by market capitalization had a 24-hour trading volume of $1,758,620,513 with an increase of more than 100%.
MATIC/USD trades at $1.4. Source: TradingView
As soon as MATIC broke the neckline of the outlined trading pattern, the selling pressure increased. Sellers continue to liquidate their positions as the price falls below the 200 EMA and 50 EMA critical levels. Finally, at $1.40, the downside finds some solid support.
On the other hand, if the price breaks through the numerous support, the immediate downside objective is $1.03. The last time the levels were seen was in September.
Because it has already happened twice in the last 45 days, another sell-off is possible. In the week leading up to the 13 January crisis, 249 million MATIC worth $339 million were traded on exchanges.
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Can Investors Hold Out?
Despite the fact that around 100 million MATIC has been bought back since then, investors are currently avoiding selling despite price declines. However, it’s impossible to say if investors would continue to HODL if MATIC fell more.
Polygon exchanges’ balance | Source: Santiment
In just 20 days, the number of investors who have lost money has increased from 30% to nearly 60%. As a result, it wouldn’t be shocking if MATIC holders ran out of patience shortly.
A good sign is that social mood is not leaning towards the bears across all media. Investors are substantially more optimistic now than they have been in almost four months, according to Santiment. This week also saw the first signs of investor euphoria because the overall mood had been negative until February 17th.
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.
Related article | Polygon Expands Its Footprint As Evolving NFT And Gaming Ecosystems
Featured image from Unsplash, chart from TradingView.com, and Santiment