- Technical indicators indicated a further decline in the price of MATIC this week.
- Its price has fallen by double digits in the past two weeks.
Polygon's governance token, MATIC, is poised to extend its weekly loss, as readings of its key indicators evaluated on a one-day chart suggest the potential for further price decline.
As of this writing, the Layer 2 (L2) token is trading at $0.9. according to Coin Market Cap According to the data, since MATIC rose to a one-year high of $1.27 on March 14, its value has declined by 25%.
MATIC is about to fall further in price
The decline in the price of MATIC, which began on March 15, coincided with the crossing of its MACD line below the signal line.
Being below the zero line at the time of publication, the position of the token's MACD line showed that the market was filled with significant selling activity.
An asset market is said to be in a declining state when its MACD line intersects the signal line in a downtrend and enters the negative zone.
This means that the short-term moving average is lower than the long-term moving average.
Traders often interpret this as a signal to exit long positions and take short positions, thus imposing downward pressure on the asset price.
Confirming the current downtrend, MATIC's Directional Movement Indicator (DMI) showed the positive trend indicator (green) settling below its negative indicator (red).
The red line also crossed above the red line on March 15, confirming when the bears regained control of the market.
When these trend lines are placed in this way, it means that the power of bears significantly exceeds that of bulls, as selling momentum is high.
Furthermore, MATIC's Aroon Up Line (orange) is at 0% at the time of writing. This indicator measures the strength of an asset's trend and potential reversal points.
When an asset's Aroon Up line approaches zero, it means that its highest price has been reached in a long time.
Read polygon [MATIC] Price forecasts 2024-25
Indicating a decline in demand for MATIC by market participants, Chaikin Cash Flow (CMF) stood at -0.05 at the time of publishing this report. This indicator measures the flow of money into and out of an asset.
Source: MATIC/USDT on TradingView
When its value is less than zero, this indicates a weak market and a significant increase in the currency distribution. This is often preceded by a decline in the price of the asset.
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