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Polygon sees a bearish breakout, will MATIC hit a new year low?

Press Releases Crypto News AMB-Crypto Polygon sees a bearish breakout, will MATIC hit a new year low?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Sellers seized the momentum with a bearish breakout from the compact range.
Liquidation data highlighted shorts leverage.

Polygon [MATIC] broke out of its sideways structure on the higher timeframes with the selling pressure taking it to the $0.5 support level.

Realistic or not, here’s MATIC’s market cap in BTC terms

An earlier report by AMBCrypto on MATIC’s price action highlighted the possibility of a bearish breakout from the compact range. This analysis was validated with MATIC dropping by 9.7%.

However, the $0.5 support has held up in the short term and could provide a base for bulls to rally again in the long term.

Bears gained the upper hand after a range-bound price movement

Source: MATIC/USDT on Trading View

MATIC’s price action stalled after bulls were rejected at the $0.6 price zone in early October. This led the altcoin to trade sideways between $0.55 to $0.6 from 1 October to 8 October.

Sellers finally secured a bearish breakout on 9 October with the selling pressure sinking MATIC toward the year lows of $0.5. The descent of price to the $0.5 level marked the third time the level will be re-tested within the period of a month.

This highlighted the growing selling pressure which could result in a new year-low for MATIC.

In the meantime, the Relative Strength Index (RSI) reflected the selling pressure, as it remained under the neutral 50 with a reading of 36. Likewise, the Chaikin Money Flow (CMF) recorded massive capital outflows to strengthen sellers’ leverage.