Cardano & Polygon On the Edge
Cardano’s ADA and Polygon’s MATIC appear to have entered a new downtrend as market conditions deteriorate.
Cardano experienced a severe correction over the past 36 hours. It saw its value drop by more 40%, from $0.66 at the high to $0.38 at the low. ADA recovered $0.47 to regain support but it still has room for further decline.
The technical perspective is that Cardano’s recent downswing enabled it to break free from the descending parallel channel which has been present on its daily charts since September 2021. The breach of the pattern’s lower boundary suggests that ADA has entered a steep 50% downtrend toward $0.28 or even $0.21.
An extended daily close below $0.47 can be a confirmation of the pessimistic outlook.
If Cardano can defend the $0.47 support level, a brief upswing to retest the channel’s lower boundary at $0.55 can be expected. However, ADA needs to publish a daily close higher than $0.97 in order to invalidate the mid-term bearish thesis.
Polygon’s MATIC is another altcoin that appears to have entered a new downtrend. The Layer 2 token recently broke out of an Adam & Even double top that developed on its three-day chart since May 2021.
The 49% correction that MATIC has seen over the past 36 hours allowed it to slice through the pattern’s valley floor at $0.62. A further selling pressure can lead to a 78% rebound towards $0.13, or even $0.08.
MATIC would have $0.87 to be able to cancel the bearish outlook.
The cryptocurrency market continues its growth BleedThis week, Terra’s Layer 1 blockchain entered meltdown mode due to. UST Lost its peg against the dollar, and it is currently worth just $0.46, while the network’s other token, LUNA, is trading at around $0.006. The world’s biggest stablecoin, Tether (USDT), also Lost its peg early Thursday amid extreme market conditions, dropping to $0.95 and then recovering to $0.99.