Cardano and Polygon are in a very delicate position. ADA and MATIC tokens are plummeting and the future looks bleak.
The bloodbath in the cryptocurrency market does not seem to be ending anytime soon, and it is Cardano and Polygon that are starting to show signs of weakness today. Cryptocurrency Cardano ADA and MATIC Polygon appear to be entering a dangerous new low trend as market conditions continue to worsen.
Cardano and Polygon in a very delicate position
Cardano has undergone a sharp correction in the last 36 hours and its value has fallen by more than 40% from $0.66 to $0.38. While ADA may have recovered to $0.47, the decline could continue. More technically, this recent decline allowed Cardano to complete the descending parallel channel that has been developing on its daily curve since September 2021.
A break of this descending boundary suggests that ADA has entered a very steep 50% downtrend that could drop to $0.28 or even $0.21. A close below $0.47 is ultimately only confirmation of this pessimistic view. If Cardano manages to defend its position at $0.47, a short-term rally can be expected to retest the lower boundary at $0.55. But to refute this bearish thesis,
ADA and MATIC tokens are falling and the future looks bleak
Cryptocurrency MATIC by Polygon is another altcoin that seems to be in a downtrend. The Level 2 token recently broke through the double top formed on its curve in May 2021. The 49% correction MATIC experienced over the past 36 hours has sent it below $0.62. Selling pressure at current levels could see the currency fall further to $0.13 or even $0.08. MATIC needs to recover to $0.87 to disprove this bearish thesis.
The crypto market has been bleeding steadily ever since the Terra Level 1 blockchain crashed this week. UST has lost touch with the dollar and currently only wants $0.46, while the network’s other token, LUNA, is currently trading at around $0.006. The world’s largest stablecoin, Tether (USDT), also recently lost touch with the dollar due to extreme market conditions, dropping to $0.95 before bouncing back to $0.99.