{"id":405240,"date":"2022-02-12T20:55:28","date_gmt":"2022-02-12T17:55:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern\/"},"modified":"2022-02-12T20:55:28","modified_gmt":"2022-02-12T17:55:28","slug":"polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern\/","title":{"rendered":"# Polygon price risks 50% drop as MATIC paints inverted cup and handle pattern"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29bb597706d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29bb597706d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern\/#MATIC_price_chart_painting_classic_bearish_pattern\" >MATIC price chart painting classic bearish pattern<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern\/#Polygon_bullish_scenario\" >Polygon bullish scenario<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern\/#Strong_on-chain_data\" >Strong on-chain data<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Polygon price risks 50% drop as MATIC paints inverted cup and handle pattern <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Polygon (MATIC) has dropped by more than 40% from its record high of $2.92, established on Dec. 27, 2021. But if a classic technical indicator is to be believed, the token has more room to drop in the sessions ahead.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"MATIC_price_chart_painting_classic_bearish_pattern\"><\/span>MATIC price chart painting classic bearish pattern<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MATIC&#8217;s recent rollover from bullish to bearish, followed by a rebound to the upside, has led to the formation of what <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears like an inverted cup and handle pattern\u00a0\u2014 a large crescent shape followed by a less extreme upside retracement, as shown in the chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/57130fc8-8306-42ea-b4c9-33e7167746ec.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>MATIC\/USD three-day price chart featuring inverted cup and handle pattern. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In a &#8220;perfect&#8221; scenario, inverted cup and handle setups set the stage for a downturn ahead. As they do, the price tends to fall towards levels that are at length equal to the maximum distance between the setup&#8217;s top and bottom, when measured from the breakout level.<\/p>\n<p>Therefore, if MATIC breaks bearish out of its &#8220;handle&#8221; range, i.e., a drop accompanied by an increase in volumes, it may fall toward $0.86, nearly 50% below its current prices, in the future.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Polygon_bullish_scenario\"><\/span>Polygon bullish scenario<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Polygon&#8217;s extremely bearish outlook emerged amid a broader crypto market correction in 2022.<\/p>\n<p>Top tokens Bitcoin (BTC) and Ether (ETH) trimmed nearly 11% and 22% off their market valuations year-to-date. Their plunge also triggered similar downside moves elsewhere in the crypto market, with its overall valuation falling to $1.878 trillion on Feb.11 from $2.190 trillion at the beginning of this year.<\/p>\n<p>Polygon&#8217;s market capitalization dropped to $12.96 billion from $18.10 billion, with MATIC&#8217;s per token price plunging over 30% to $1.734 in the same period. Nonetheless, a technical support confluence kept the token&#8217;s bullish hopes alive.<\/p>\n<p>In detail, two support levels in the form of MATIC&#8217;s 200-day exponential moving average (200-day EMA; the blue wave in the chart below) and a multi-month upward sloping trendline (purple) helped MATIC limit its bearish bias. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/ac8ddd7c-f3db-4c42-a625-a5b0f992d7dc.png\"><figcaption style=\"text-align: center;\"><em>MATIC\/USD daily price chart featuring its key support levels. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The Polygon token has been again testing the support confluence for a potential price rebound ahead. However, it appears that an upside retracement would have MATIC retest an imminent resistance level above in the form of a negative sloping trendline (blacked).<\/p>\n<p> As a result, a bullish setup could emerge only on a decisive rebound, i.e., price rising alongside trading volumes.<\/p>\n<p>If not, MATIC would risk validating the inverted cup and handle pattern above which, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thepatternsite.com\/icup.html\">according to veteran analyst\u00a0Tom Bulkowski<\/a>, has a 62% success rate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Strong_on-chain_data\"><\/span>Strong on-chain data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MATIC serves as the currency of the Polygon ecosystem with its primary use cases involving fees and staking. Users can choose Polygon for its ability to process Ethereum transactions faster and at a cheaper rate. <\/p>\n<p><strong><em>Related:\u00a0Polygon raises $450M in Sequoia-led funding round<\/em><\/strong><\/p>\n<p>For that reason, Polygon&#8217;s daily active addresses (DAA) now averages around 300,000 a day compared to 759 at the beginning of 2021, according to data provided by PolygonScan.com.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/b0958e18-e8dd-4952-b084-30b8e5eb6cc1.png\"><figcaption style=\"text-align: center;\"><em>Polygon daily active addresses. Source: PolygonScan.com<\/em><\/figcaption><\/figure>\n<p>Analysts at Panther Research considered a rising DAA as bullish for MATIC, citing Ethereum as their benchmark, whose increasing DAA has been correlating with a rise in ETH prices. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/33e0ff1c-8b0f-49cf-ab31-e9706587da0c.png\"><figcaption style=\"text-align: center;\"><em>Ethereum active addresses. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Excerpts <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4486514-polygon-on-chain-metrics-narrative\" data-amp=\"https:\/\/seekingalpha-com.cdn.ampproject.org\/c\/s\/seekingalpha.com\/amp\/article\/4486514-polygon-on-chain-metrics-narrative\">from their note<\/a>:<\/p>\n<blockquote><p>&#8220;Given how closely Ethereum\u2019s network adoption and Polygon\u2019s are related, coupled with the fact that Polygon\u2019s PoS Sidechain is set to overtake moving forward and as more solutions are deployed by L1s, it would be reasonable to anticipate that the MATIC token is set to gain value in time to come.&#8221;<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/polygon-price-risks-50-drop-as-matic-paints-inverted-cup-and-handle-pattern\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Polygon price risks 50% drop as MATIC paints inverted cup and handle pattern &#8221; Polygon (MATIC) has dropped by more than 40% from its record high of $2.92, established on Dec. 27, 2021. But if a classic technical indicator is to be believed, the token has more room to drop in the sessions ahead&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":405241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDIvNTRlNjM5MWYtYTg1My00YTc5LThkNmUtOGU5ZTNhOWE0NzRmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74863,74939,113408,78261,73785],"class_list":["post-405240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-cryptocurrencies","tag-market-analysis","tag-polygon","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=405240"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405240\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/405241"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=405240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=405240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=405240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}