MATIC Struggles at the 05 Resistance Level Reasons Why a Downturn May Follow

CoinDesk Report:
MATIC retested $0.5 as resistance for a rebound, with small trading volume before. It is expected to drop to $0.448 or lower next week.
Polygon[MATIC] is in a downtrend like most other altcoins in the cryptocurrency market. It also broke through a range like Bitcoin (BTC) did last week, making it difficult for bulls to stop bears.
The recent price drop to $0.44 has brought great pain to investors, as this is the lowest trading price for MATIC since June 2022.
Over the past three months, buyers have been unable to defend the gains earlier this year, indicating long-term bearish sentiment.
The MATIC bull market forced the price to rebound 18% within 36 hours.
After the crash on Friday, July 5th, MATIC rebounded to the psychological resistance level of $0.5, but with low trading volume. In the past few hours of trading, MATIC bears have started pushing the price lower.
On the 12-hour chart, the RSI has been below the neutral 50 since early June, indicating a developing bearish trend. This has not changed. $0.543 and $0.518 are resistance levels on lower timeframes that short sellers may be waiting to reject.
OBV continues to decline, highlighting the strength of sellers since April. Coupled with price action, a move towards $0.44 and $0.393 may be brewing.
Funding rates have rebounded, but speculators remain cautious.
On July 5th and 6th, funding rates dropped to negative values, indicating dominance by short sellers. Since then, funding rates have risen above zero, but have not shown optimism.
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In the past few hours, as MATIC encountered resistance at $0.5, open interest contracts also dropped, indicating that speculators prefer to stay on the sidelines rather than buy MATIC.
Spot CVD has been declining in July after experiencing some buying pressure in the latter half of June. Overall, sellers are very strong, and prices may decline further.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other form of advice, and is solely the opinion of the author.