There is no denying that the technical outlook for the crypto market is getting very bad as most of the top 20 altcoins are already in the red. One altcoin that really stands out with a massive drop is MATIC.

After the decline on May 19, MATIC saw an almost immediate recovery over the next week. However, this did not last long and has been gradually decreasing since the end of May.

Over the past few weeks, MATIC’s market structure appears to be completely bearish, with a decline of almost 40% since the beginning of this month. In this context, many theories have been put forward about “buying the dip” and finding the right opportunity to enter the market.

However, the question was raised of “when to buy the dip” and “where is the perfect buying zone”. To understand the same thing, it is first important to understand where the market is currently at.

What do the indicators say?

MATIC’s sharp decline has pushed the altcoin into oversold territory on the daily chart. MATIC’s trading volume is also volatile as the altcoin is trading at $ 0.69 at press time, a 74.07% decline from its ATH of $ 2.50 in May.

MATIC / USDT daily chart | Source: TradingView

In addition, the active addresses of MATIC have returned to the level of the end of April and had reached a three-month low at the time of going to press. The number of new MATIC addresses is also falling. However, this is not the worst as the indicator of the average volume of altcoins transferred to the exchanges is at an all-time low, which is a worrying picture for altcoins.

Source: Glass knot

Previous analysis showed that the DAA divergence is predicting a strong bullish signal. Unfortunately, it didn’t last long against other bearish indicators.

Potential purchase area

As the current altcoin picture is a bearish story as MATIC hits lower highs and lower lows, the question arises, “When is the right time to enter the market?” According to renowned analyst Nebraskan Gooner, the next big support is at $ 0.45 as MATIC has turned the $ 0.85 support level into resistance. That would be a good buy zone for short-term traders if the Alt tests this level again. The analyst added:

“Many don’t understand that, but it’s great that you can break out (especially with Bitcoin) when there is great resistance. This gives you the capital to buy at lower levels when the main market trend is down. “

MATIC / USDT daily chart | Source: Nebraskan Gooner Youtube

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Ambcrypto

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