Polygon Price Dips Further: Is Another 10% Drop Imminent?

Polygon price has been successful a freefall for the past fewer days, dropping beneath the important enactment level of $0.95. The altcoin has dipped astir 9% implicit the past week and 13% successful the past 4 days. The plus is up by 15.20% successful the twelvemonth to date. Polygon’s marketplace headdress has crashed to $8 cardinal implicit the past fewer days, portion its full measurement fell further. The plus presently ranks arsenic the 10^th largest cryptocurrency by marketplace cap, aft Solana and up of Polkadot.

Polygon terms has been nether immense unit for the past fewer weeks, dipping much than 43% from its highest level this twelvemonth successful February. At property time, the plus was trading 2.91% little astatine $0.8750. The asset’s selloff has been intricately linked to the caller dip successful the planetary crypto marketplace cap.

Data by Coinmarketcap shows that the planetary crypto marketplace headdress has crashed to $1.14 trillion implicit the past fewer days, portion the full crypto marketplace measurement decreased by 27.86% implicit the past day. Bitcoin’s caller dip beneath the important enactment level of $28,000, has besides seen the MATIC terms plunge. Bitcoin, the largest integer plus by marketplace cap, has been changing hands astatine $27,500 implicit the past fewer days amid congestion connected the asset’s network.

Binance, the largest cryptocurrency exchange, precocious halted the withdrawals of the BTC token temporarily owed to congestion connected the blockchain. The congestion besides resulted successful a surge successful transaction fees, the highest since 2017. These events saw the Bitcoin terms plummet by much than 8% successful the past fewer days.

Investors volition beryllium intimately watching the US user terms scale information for April, arsenic good arsenic the shaper terms scale data, to gauge the economical outlook. The US Federal Reserve accrued its involvement complaint by 25 ground points earlier past week, a determination that did not mostly impact the crypto marketplace arsenic investors had already priced successful the involvement complaint hike. Even so, the Fed announced that it was committed to achieving its 2% goal.

Polygon terms has been successful a correction signifier for the past 2 months, falling much than 40% from this year’s precocious of $1.57. As highlighted connected the regular chart, the plus has remained beneath the 50-day and 100-day moving averages, arsenic good arsenic the 50-day and 200-day exponential moving averages. It has besides moved beneath the 50-day and 100-day elemental moving averages.

Its Relative Strength Index (RSI) has moved little into the oversold region, suggesting a prolonged selloff successful the ensuing sessions. The Moving Average Convergence Divergence (MACD) indicator is besides bearish.

Therefore, I expect the Polygon terms to autumn further arsenic bears oculus the adjacent enactment levels astatine $0.8338 and $0.7760. However, a determination past the important level of $0.95 mightiness make a caller accidental for the bulls.