By Franklin Smith
Santiment data shows Polygon recorded a development activity surge. Nevertheless, social engagement dipped within the previous month. The charts show MATIC witnessed a swift rejection at the $0.94 resistance.
While publishing this blog, MATIC’s momentum favored sellers. Meanwhile, this might shift swiftly if Bitcoin bulls push beyond $19.4K. Can Polygon’s native coin overturn $0.77 to support, or see more plunged to $0.67?
Polygon 4Hr Timeframe
The 4hr chart presented a crucial support level at $0.77. This zone witnessed several price tests in August. Each time, MATIC buyers rebuffed the bears. August’s final sessions saw bulls triggering a massive surge to $0.94. The zone served as a significant resistance level in early August before the bulls forced a break.
While publishing this post, MATIC retested the support at $0.77 as resistance. That reflected buyer exhaustion over the past few days. The RSI (Relative Strength Index) (on the four-hour chart) remained beneath the 40-level, showing massive downside momentum.
Polygon 1Hr Timeframe
MATIC flipping the substantial liquidity zone at $0.77 to resistance from support within the last few days showed the lower timeframe stance remained bearish. That meant any price rebound would lean toward selling. The previous two days witnessed a massive selling momentum at $0.75 – $0.77.
Also, the altcoin identified a support level of $0.72. MATIC had last tested this level in late July. Thus, matching the four-hour chart bearishness, lower timeframe investors might look to join the downside drop to $0.722 before hitting $0.677 – another support zone from mid-July.
Polygon bulls should flip $0.77 to a foothold to cancel the bearish sentiment. Also, the hourly Relative Strength Index remained under the 50-neutral, though beyond 40. That meant the momentum slightly favored sellers during this publication.
The A/D (Accumulation/Distribution) line recorded an upswing within the last few days after rebounding to retest $0.77 as resistance. The DMI (Directional Movement Index) indicated that the ADX (Average Directional Index) and –DI moved beyond 20. That confirmed massive bearishness.
Final Thought
The coming day or two might witness Bitcoin recovering if the FOMC confirms the expected hike. That might see the markets’ bearishness flipping to bullish within no time. Meanwhile, traders can watch for selling opportunities until Polygon (MATIC) surges beyond $0.77.
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