A bear model that can halve the price of Paligan!

Paligan’s price is 40% of the $ 2.92 high recorded on December 27 (December 6). Now, if the bearish chart pattern of this digital currency works properly, it is likely that Paligan will lose 50% of its value.

According to the Kevin Telegraph, Palان Paligan’s recent reversal, which changed the market from an uptrend to a downtrend, was followed by an uptrend, and this uptrend formed a model that analysts call a “cup and reverse handle”, they say. This model consists of a semicircle or a large crescent-shaped part (cup), which is accompanied by a limited return (handle), as shown below.

A bear model that can halve the price of Paligan!
Paligan Price Chart; Inverted model of cup and handle in 3-day market view.

If the model of the cup and the handle is perfect, we should expect a further drop in the price of Paligan. Filling this model can reduce the cost by as much as the distance between the ceiling and the bottom of the cup, after the support of the handle is broken.

As a result, if Polygon’s price candle falls outside the range envisaged as a category, reducing the price with increasing trading volume could bring Polygon closer to $ 0.86; A level that is almost 50% lower than current prices.

Ascending scenario for Paligan

Paligan’s all-time bearish prospects from the very beginning On the digital currency market has undergone a major overhaul since early 2022.

Bitcoin and Atrium have lost 11 and 22 percent of their value since the beginning of the year, respectively, and falling prices have caused other digital currencies to fluctuate in a similar way; from $ 2.190 trillion at the start of the new year to $ 1.878 trillion.

Paligan’s market value has fallen from $ 18.10 billion to $ 12.96 billion since early 2022. The price of this digital currency has fallen 30% to $ 1.70. Despite all this, the intersection of price support makes retailers hope that Paligan will grow again.

The support we talked about is the 200-day moving average (EMA) and the uptrend line in the chart below, which have so far prevented a sharp drop in the price of this digital currency for several months.

A bear model that can halve the price of Paligan!
Paligan Price Chart; The intersection of price support in the 1-day market view.

The Paligan market is now testing these levels of support again, and if buyers keep the price at that level, you should expect a return. With the beginning of this upward trend, the price candle will face close resistance, which can be seen in the form of a downward line in the chart above.

Therefore, we can only hope that the overall situation in the Paligan market will increase if we see a stable upward return; This means simultaneously increasing the price and volume of transactions.

Otherwise, the inverted cup and handle pattern are more likely to form; The downward trend, according to Tom Bulkowski, a digital currency analyst, has a 62% chance of success.

Read also: What is a polygon? Shopping lessons and wallets + video

The state of intra-chain data is still rising

The MATIC digital currency (MATIC), whose price chart we reviewed earlier, is actually the main token of the Paligan network, used for various activities such as warehousing and transaction fees. Paligan users have chosen this network because of its ability to process Atrium transactions faster and cheaper.

That’s why the average number of daily active Paligan addresses has increased from 759 to 300,000 since the beginning of 2021.

A bear model that can halve the price of Paligan!
Graph of the number of active Paligan network addresses

Analysts at Panther Research believe that the average increase in the number of daily active addresses on the Paligan Network is a rising signal for the price of this digital currency. Their reference to such an argument is the link between price increases and the average increase in the number of Atrium’s daily active network addresses.

A bear model that can halve the price of Paligan!
Compare the price and number of daily active addresses of the Atrium network

Panther Research analysts say:

Due to the fact that the growth of Atrium network acceptance is also affecting Polygon and, of course, given the fact that the side chain based on Polygon stocks is constantly evolving and developing more scalable solutions for networks from the first level. ,. It seems reasonable to expect the price of Metic tokens to rise in the future.

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