and are in a difficult position after breaking key support areas.
The central theses
- Cardano and polygon are down more than 4% in the last 36 hours.
- Further selling pressure would increase the risk of the two assets falling another 50%.
- needs to reclaim $0.97 as support and move up to $0.87 to invalidate bearish outlook.
The cryptocurrency market bloodbath may not be over, with Cardano and Polygon showing signs of weakness.
Cardano and Polygon On the Edge
Cardano’s ADA and Polygon’s MATIC appear to have entered a fresh downtrend as market conditions worsen.
Cardano suffered a brutal one in the last 36 hours correction. The price fell more than 40%, rising from a high of $0.66 to a recent low of $0.38. Although ADA rallied and reclaimed $0.47 as support, it has room for another decline.
From a technical standpoint, the recent decline allowed Cardano to break out of a descending parallel channel that has been developing on its daily chart since September 2021. The break of the lower border of the pattern suggests that ADA entered a steep 50 percent downtrend towards $0.28 or even $0.21.
A sustained daily close below $0.47 can serve as confirmation of the bearish outlook.
When Cardano defending the $0.47 support level, expect a brief bounce to retest the channel’s lower border at $0.55. But for the medium-term bearish thesis to be invalidated, ADA would need to print a daily close above $0.97.
Source: TradingViewPolygon’s MATIC is another altcoin that seems to have entered a new downtrend. The layer 2 token recently broke out of a double top from Adam & Even that has been developing on its three-day chart since May 2021.
The 49% correction experienced by MATIC over the past 36 hours allowed it to break the pattern’s valley bottom at $0.62. Further selling pressure around the current price level may lead to a 78% retracement towards $0.13 or even $0.08.
MATIC would need to reclaim $0.87 for a chance to invalidate the bearish outlook.
Source: TradingViewThe cryptocurrency market continues blossoms after the layer 1Blockchain entered Meltdown mode this week. VAT lost its peg to the dollar, and it’s currently worth just $0.46, while the network’s other token, LUNA, is trading at around $0.006. Also the biggest stablecoin of the world lost its bond early Thursday, amid extreme market conditions, fell to $0.95 and then recovered to $0.99.
Source: Crypto News Deutsch