Technical Analysis: Cosmos Decline Continues, as Polygon Surges
Ahead of Wednesday’s FOMC meeting, cryptocurrency markets were once again trading higher, with polygon (MATIC) being one of today’s biggest gainers. Despite the top 20 mainly trending upward, some in this list were mainly lower during the course of the session.
Biggest Gainers
Polygon (MATIC), which was one of the biggest gainers within the top 20, was up by as much as 12% in Wednesday’s session, hitting an intraday high of $1.72 in the process.
The move saw MATIC/USD bounce from its support level of $1.49, and attempt to make a run for resistance at $1.77.
Today’s rally saw prices rise by their most in 4-days, leading to the RSI moving from 33, to a reading of 37, which is the biggest gain in price strength since January 20th.
Although there has historically been increases in price at the current rate, should MATIC/USD find its way to $1.80, market uncertainty could likely increase.
Looking at the chart below, there appears to be several bearish candlesticks at this level, which could mean those bulls who entered at $1.49, may likely begin to take profit the closer we get to resistance.
Traders will now wait to see how this move plays out as we head to the end of the day.
Biggest Losers
Although most cryptos in the top 20 were in the green during most of today’s session, there were a few exceptions, with cosmos (ATOM) being one of them.
ATOM fell for the second consecutive session, falling by as much as 9%, resulting in it hitting a low of $33.47 in the process.
The selloff took place at the $36.25 resistance level, which has been a long-established ceiling in terms of price movement.
Looking at the chart, a downward cross between the 10/25-day moving averages has also occurred, which could mean that the current bearish momentum may continue in upcoming days.
Could we be headed to support at $29? Let us know your thoughts in the comments section below.
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