Price action has been very ‘blah’ the last couple of weeks – but some analysts see a possible turning point in the market for some cryptocurrencies. 👨💻
$MATIC‘s weekly chart looks like many cryptocurrencies that have been outperforming the market.
From an Ichimoku perspective, Polygon’s weekly chart is ugly as hell. Very ugly. It’s so ugly, it could make an onion cry.
Why? Because it’s inside the Cloud.
The Cloud represents:
- Abscessed tooth.
- A lip that you accidentally bit but continue to bite accidentally.
- The TSA.
- That time I got broken up with at Bible Camp in ’98.
- Vladimir Putin.
- And everything else bad in the world.
Unfortunately, for the bulls, it might be essential for Polygon to drop to the $0.88 value area to test the bottom of the Cloud (Senkou Span A).
Doing so would likely put the Composite Index in a position where it could complete a hidden bullish divergence pattern.
Additionally, the weekly RSI remains in bear market conditions – but it did recently test 70. To confirm a full shift into a bear market in the RSI, it needs to return to 70 soon, or else MATIC will likely continue its move south. 🔴
From a bullish perspective, analysts see several pieces of technical data indicating a swing low could occur:
- $0.327 is the most powerful support/resistance level in the Ichimoku Kinko Hyo system (Senkou Span B).
- Bullish divergence.
- Today is the 17th day from the prior swing high. In the Ichimoku Time Principle, the number 17 is a primary number used to identify when major/minor turns could occur.↩️
While the technicals point to some strong evidence that a return to bullish conditions could occur, the weekly chart shows something slightly different.
From a bearish perspective, analysts warn how close $ADA is to a bearish continuation move:
- Cardano returned below the Tenkan-Sen.
- Declining volume.
- Bearish cross in the Composite Index.
The cross of the Composite Index below both moving averages is good for the bears, but if you look closely, the move in the oscillators is out of proportion compared to the price chart.
Additionally, the Relative Strength Index remains in bear market conditions – but it’s sitting almost smack dab in the middle. Not exactly screaming bearish continuation.
It’s a mixed bag all around, and it’s no wonder participation has dropped – choppy markets don’t make for fun conditions. 🗑️