- Uniswap holds onto critical support at the 100 SMA amid a battle to avoid further declines under $20.
- MATIC price may plunge to $0.73 if overhead pressure keeps surging under $1.
The week’s trading in the cryptocurrency market seems to be progressing in decline after buyers lost steam across the board. Bitcoin has a bid for $40,000 but lost steam at $34,500. At the time of writing, BTC trades slightly above $33,000 in the wake of a 4% loss in 24 hours. The rest of the market is in the red, with considerable single-digit losses.
Uniswap price has corrected beneath an ascending parallel pattern’s lower edge support. Moreover, closing the day under $20 introduced a new perspective on how the week’s trading may continue.
The 50 Simple Moving Average (SMA) on the four-hour chart provides immediate support at writing. Uniswap trades at $19.5 but may stretch the bearish leg further the short-term anchor shatters.
According to the Moving Average Convergence Divergence (MACD) indicator, Uniswap is bound to keep dropping in the near term. The technical tool has a vivid bearish call that came into the picture when the 12-day EMA closed the day above the 26-day EMA. Note that the buyer congestion at $18 and $15 will come in handy if bulls are overpowered.
UNI/USD four-hour chartLive Chart
UNI/USD price chart by Tradingview
Polygon is starting another chapter, only that this time it’s bearish under $1. Following the formation of a descending triangle pattern, MATIC gears up for a 28% dip to $0.73 (a zone close to May’s support).
Meanwhile, the token teeters at $0.99 after losing the critical support at $1 and risking a huge downfall. A bearish moving average cross suggests that the slightest resistance path is downward. In addition to that, the MACD has a minor bearish signal based on the four-hour chart.
MATIC/USD four-hour chartLive Chart
MATIC/USD price chart by Tradingview
It worth noting that the bearish outlook will be invalidated if support at $1 is reclaimed in the short term. Settling above this level will purge Polygon’s market of bearish calls to $0.73 while allowing more buyers to return into the market amid speculation for gains toward $2.