Cardano and Polygon at Danger of Freefall

Key Takeaways

  • Cardano and Polygon have dropped by greater than 4% over the previous 36 hours. 
  • Additional promoting stress would enhance the danger for the 2 property to drop one other 50%.
  • ADA should reclaim $0.97 as help, and MATIC surge to $0.87 to invalidate the pessimistic outlook.

The massacre within the cryptocurrency market could haven’t any finish in sight, and Cardano and Polygon are exhibiting indicators of weak spot. 

Cardano and Polygon On the Edge

Cardano’s ADA and Polygon’s MATIC seem to have entered a brand new downtrend as market situations deteriorate. 

Cardano suffered a brutal correction prior to now 36 hours. It noticed its worth drop by greater than 40%, going from a excessive of $0.66 to a latest low of $0.38. Although ADA rebounded to reclaim $0.47 as help, it has room to drop additional. 

From a technical perspective, the latest downswing allowed Cardano to interrupt out of a descending parallel channel that has developed on its every day chart since September 2021. The breach of the sample’s decrease boundary means that ADA has entered a steep 50% downtrend towards $0.28 and even $0.21. 

A sustained every day shut beneath $0.47 can function affirmation of the pessimistic outlook. 

If Cardano can defend the $0.47 help stage, a short upswing to retest the channel’s decrease boundary at $0.55 may be anticipated. However for the mid-term bearish thesis to be invalidated, ADA must print a every day shut above $0.97. 

Supply: TradingView

Polygon’s MATIC is one other altcoin that seems to have entered a brand new downtrend. The Layer 2 token not too long ago broke out of an Adam & Even double high that developed on its three-day chart since Might 2021. 

The 49% correction that MATIC has seen over the previous 36 hours allowed it to slice by the sample’s valley ground at $0.62. Additional promoting stress across the present worth ranges can lead to a 78% retracement towards $0.13 and even $0.08. 

MATIC must reclaim $0.87 to have an opportunity of invalidating the bearish outlook. 

Polygon price chart
Supply: TradingView

The cryptocurrency market continues to bleed after Layer 1 blockchain Terra entered meltdown mode this week due. UST misplaced its peg towards the greenback, and it’s at present price simply $0.46, whereas the community’s different token, LUNA, is buying and selling at round $0.006. The world’s greatest stablecoin, Tether (USDT), additionally misplaced its peg early Thursday amid excessive market situations, dropping to $0.95 after which recovering to $0.99. 

Disclosure: On the time of writing, the writer of this piece owned BTC and ETH.

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Bitcoin (BTC) $ 17,023.96
Ethereum (ETH) $ 1,260.16
Tether (USDT) $ 1.00
BNB (BNB) $ 290.74
USD Coin (USDC) $ 1.00
Binance USD (BUSD) $ 1.00
XRP (XRP) $ 0.391893
Dogecoin (DOGE) $ 0.104996
Cardano (ADA) $ 0.321573
Polygon (MATIC) $ 0.913622