MATIC May Fluctuate as Traders Await Next Fed Announcement
Polygon [MATIC] has seen a 15% depreciation, dropping from around $1.18 to $0.9998 due to the persistent Bitcoin [BTC] correction in the past week. Despite signs of easing short-term selling pressure, MATIC may fluctuate as traders wait for the next Fed announcement on 2-3 May.
A Recovery, Consolidation, or Retracement for MATIC?
Bitcoin’s correction forced MATIC to inflict a bearish breakout from its previous $1.14 – $1.18 range. Sustained selling pressure saw MATIC break below key supports. However, the plunge has since steadied within the $0.9998 – $1.0261 range at the time of writing.
Notably, the ADX (Average Directional Index) increased but was flat, showing that the strong downtrend eased. Meanwhile, the RSI attempted a pullback from the oversold zone, indicating mild buying pressure. But the stochastic RSI hit the overbought zone, meaning buyers could give space to sellers again.
Ergo, MATIC could be constricted within the $0.9998 – $1.0261 range, depreciate to $0.9735, or the March swing low of $0.9439. The downtrend could be accelerated if BTC drops below the $27k price range. Conversely, MATIC could aim at the 50-EMA ($1.0831) without hitting lower supports, especially if BTC reclaims $28k and $29k price ranges. But near-term bears must clear the $1.0261 and $1.05 hurdles to gain little leverage.
Supply on Exchanges Declined
Supply on exchanges declined significantly from 20 April, indicating short-term selling pressure decreased. In the same period, supply outside of exchanges increased while the exchange flow balance was negative (more outflows) – evidence of a short-term accumulation trend.
However, there was a spike in supply on exchange at the time of writing, implying short-term selling pressure still looms large. Traders can track BTC price action for optimized set-ups.
Conclusion
While MATIC’s price has steadied near $1.026 at the time of writing, any hawkish Fed announcement next week could exert more downward pressure on the crypto market. Traders should keep a close eye on BTC’s price action for optimized set-ups and consider the potential scenarios outlined above when making investment decisions.
- Polygon [MATIC] has seen a 15% depreciation due to the persistent Bitcoin [BTC] correction.
- Short-term selling pressure has eased, but MATIC may fluctuate as traders wait for the next Fed announcement on 2-3 May.
- Supply on exchanges declined significantly from 20 April, indicating short-term selling pressure decreased.
- However, there was a spike in supply on exchange at the time of writing, implying short-term selling pressure still looms large.
- Traders can track BTC price action for optimized set-ups.
