Crypto currency analyst Ali Martinez has stated that the price of Polygon (MATIC) crypto currency has dropped to $0.77 and fell below an important support level. Martinez emphasized that most addresses accumulated a total of 4.13 billion MATIC and that the important level indicated by the analyst was between $0.84 and $0.86.
Martinez stated that investors who bought in this range could sell to prevent further losses, which could cause further decline in the price of MATIC. The analyst also explained the potential levels of this consideration.
The buying volume took place between $0.84 and $0.86, and most buyers entered the market at this level. When accumulation is considered during this range, it is important to examine the trading volume as well.
The 24-hour trading volume decreased by 42%. The downward trend of MATIC affected the market between November 20th and 22nd. During this period, the MATIC price dropped from $0.85 to $0.72. However, with the recent buying pressure, the price is currently at $0.77.
When the article was written, the MACD indicator was in the negative zone and was interpreted as a continuing bearish signal. In addition, the Chaikin Money Flow (CMF) indicator was also evaluated as a continuous selling pressure in the negative zone.
The Relative Strength Index (RSI) also joined the downward trend. When the article was written, the RSI value was 45.34. The RSI value not surpassing the midpoint of 50.00 indicates that bears can seize momentum and stop the upward trend. This could mean a price below $0.70 for MATIC.
The Directional Movement Index (DMI) also supports this downward trend. When the article was written, +DMI (green) was at 15.34 and -DMI (red) was at 24.61. The difference between the DMIs indicates that sellers currently outweigh buyers. Additionally, the Average Directional Index (ADX) was at 31.11, indicating a strong downward movement in favor of bears.
As analyzed above, if the trend continues, MATIC may not surpass the accumulation range between $0.84 and $0.86 in the short term. Therefore, investors may need to exit their long positions for the token.
