Polygon (MATIC) and Cardano (ADA) have not escaped from the recent cryptocurrency market slump, which also saw Bitcoin and Ethereum prices plunge.
AltFINS recently shared detailed technical analysis of the duo on April 28, sharing the key patterns to watch.
What you'll learn 👉
MATIC Faces Stiff Resistance as Price Trades in Channel Down Pattern
Polygon (MATIC) has been experiencing a mix of downward trends, with the price currently trading in a Channel Down pattern, according to a recent technical analysis by altFINS. The cryptocurrency bounced off the channel support at $0.60 and is now approaching a significant resistance area, which includes the channel resistance trendline and horizontal resistance at $0.75.
Trend traders are advised to wait for a breakout from the Channel and above the $0.75 resistance level before initiating a trade. If MATIC manages to break through this resistance, it could potentially swing up to $0.90. Traders can set a price alert to stay informed about any significant price movements.
Trading the Channel Down Pattern
When trading the Channel Down pattern, traders who believe the price is likely to remain within the channel can initiate trades when the price fluctuates between the channel trendlines. However, if the price breaks through the channel’s trendlines, either on the upper or lower side, it can move rapidly in the direction of the breakout. This is known as a complete pattern, and traders can initiate a trade when this occurs.
MATIC’s Trend and Momentum Analysis
MATIC is currently experiencing a downtrend on both the short-term and medium-term basis, while remaining neutral on the long-term basis. The momentum is mixed, with the MACD Line above the MACD Signal Line (bullish) but the RSI below 45 (bearish).
The nearest support zone for MATIC is $0.60, followed by $0.50. On the other hand, the nearest resistance zone is $0.75 (previous support), followed by $0.90 and the $1.00 – $1.05 range.
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Show more +Cardano (ADA) Faces Similar Bearish Pressure
Cardano (ADA) is also experiencing mixed trends, with the price trading in a Channel Down pattern. Similar to MATIC, traders can initiate trades when the price fluctuates within the channel trendlines or when a breakout occurs.
ADA’s Trend and Momentum Analysis
ADA is currently in a downtrend on both the short-term and medium-term basis, while maintaining an uptrend on the long-term basis. The momentum is mixed, with the MACD Line above the MACD Signal Line (bullish) but the RSI below 45 (bearish).
The nearest support zone for ADA is $0.46, followed by $0.35. The nearest resistance zone is $0.57 (previous support), followed by the $0.65 – $0.68 range and $0.80.
Source: altFINS – Start using it today
Factors Contributing to the Price Plunge
The recent price plunge in MATIC and ADA can be attributed to several factors, including:
- Overall bearish market sentiment: The cryptocurrency market has been experiencing a general downtrend, which has put pressure on most altcoins, including MATIC and ADA.
- Profit-taking: As both MATIC and ADA have seen significant gains in the past, some investors may be taking profits, leading to increased selling pressure.
- Regulatory concerns: The ongoing regulatory uncertainty surrounding cryptocurrencies may be contributing to the bearish sentiment, as investors remain cautious about the future of the market.
By staying informed about market developments and utilizing appropriate trading strategies, such as setting price alerts and understanding chart patterns, traders can make more informed decisions and potentially capitalize on any future price movements.
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