MATIC, the token that powers the Polygon platform, has seen a 10% decline in price over the past week, trading close to the lower line of a horizontal channel since April 13. If bearish sentiment toward altcoins continues, MATIC may fall below critical support levels. The weighted sentiment for MATIC has been negative since the beginning of the month, with a value of -0.64, indicating an overall negative sentiment surrounding the asset.
The decline in MATIC’s futures open interest by 8% since the beginning of June suggests that more traders are closing positions without opening new ones, signaling a bearish trend. Key momentum indicators like the Relative Strength Index (RSI) and Money Flow Index (MFI) show oversold conditions for MATIC, with weakening buying pressure. If this trend continues, MATIC could fall below support at $0.64 to $0.61.
However, if the bulls defend the $0.64 support level and sentiment turns positive, MATIC could rally to $0.67 and trend towards the upper line of the horizontal channel. It’s important to note that this analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, so it’s recommended to conduct your own research and consult with a professional before making any financial decisions.
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