Polygon price analysis has turned bearish over the past 24 hours, as price fell more than 4 percent on the daily chart. Bulls failed to consolidate on earlier momentum that had targeted the $0.95 price point and a daily close below $0.88 could bring further downtrend for MATIC. A hammer pattern is forming on the 24-hour chart for Polygon that suggests buying from lower levels with overall market sentiment set to bearish. Short term support for MATIC is set at $0.86 as price exited a breakout range similar to July 18, 2022 that gave a bullish momentum of up to $0.97.
The larger cryptocurrency market also turned bearish over the past 24 hours, led by Bitcoin’s 3.5 percent decline at the $23,000 mark. Ethereum also fell further from its pursuit of the $2,000 mark, moving 5 percent down to $1,600. Among leading Altcoins, Cardano lowered 4 percent to $0.51, while Ripple dropped the same percentage to sit at $0.36. Dogecoin recorded a minor downtrend to move down to $0.06, whereas Solana and Polkadot receded 5 percent each, to move as low as $40.12 and $8.80, respectively.
Polygon price analysis: Inverted hammer pattern appears on 24-hour chart
On the 24-hour candlestick chart for Polygon price analysis, price can be seen forming a swift downtrend after an extended period of stagnancy around the $0.86 mark. Price has traded along a bullish line from lows of $0.41 observed on June 30, 2022. Since then, MATIC formed a double top pattern around the $0.88 mark which indicates that a close below this point could trigger losses down to $0.79. Over the last 24 hours, the daily chart formed an inverted hammer pattern, indicating the bearish movement in the market.
Price has moved below the 9 and 21-day moving averages, but remains in touch with the crucial 50-day exponential moving average (EMA) at $0.89. Furthermore, the 24-hour relative strength index (RSI) shows a distinct decline in market valuation over the past 24-48 hours after falling down to 55.83 from 60.78. Trading volume over the past 24 hours dropped by 5 percent, indicating lower buying at current price. Moreover, the moving average convergence divergence (MACD) curve can be seen forming lower lows to move further below the neutral zone in a bearish divergence.
In conclusion, traders will be looking to wait for MATIC to form an extended consolidation around the $0.88-$0.90 mark to set a bullish challenge to revisit the $0.97 mark. A daily close towards $0.86 support could trigger downtrend to as low as $0.79.
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Source: https://www.cryptopolitan.com/polygon-price-analysis-2022-08-09/