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The cryptocurrency market’s recovery came to a disappointing end as most of the major assets fell below the levels they had reached during the industry’s upswing. Unfortunately, declining buying power coincided with decreasing selling pressure when it first appeared.
Volatility of Polygon
Although the price increased by a staggering 38%, MATIC has technically been moving in a long rangebound pattern with unexpected breakouts imminent. The price of Polygon’s token is currently at the same level as it was in July, making the nearly half-year return for MATIC 0%.
Aside from the perplexing price behavior, Matic may present us with an unexpected spike in volatility in the near future given that all moving averages on the asset’s daily chart have been convergent recently. Assets may move irrationally and put a lot of pressure on their holders during spikes in volatility.
Ethereum on break
The recovery of Ethereum was not the biggest development in the market over the past week. In fact, the market’s second-largest cryptocurrency has made some progress and reached the local resistance level. However, the growth supported by higher debt issuance and the plummeting burn rate were very detrimental factors that doomed this recovery to failure.
Ethereum has been purposefully attempting to rise above the 50-day moving average for the past eight days in order to clear the way for ETH to break through the $1,300 price barrier. Sadly, the aforementioned factors resulted in a reversal of the $1,200 price range and will probably lead to a further decline until bears lose the ability and resources to drive ETH lower.
Given that there are no significant growth drivers occurring within the Ethereum ecosystem, the most likely outcome from here is a complete correlation with Bitcoin and the rest of the market. The second-largest asset on the market does not appear to be affected by the previously reported recovery of the NFT industry.
Fearless fight Litecoin has with the market
Investors have been taken aback by the classic crypto and silver of the digital assets sector’s explosive price performance during the market depression. One of the best-performing assets on the market over the past 30 days has been Litecoin, which has seen a value increase of more than 50% since the middle of November.
However, during the consolidation that started on Nov. 30, LTC lost the majority of its momentum. Volume profiles showed that bulls were unable to push LTC higher as some short-term investors started taking profits, putting up significant obstacles to the rally’s acceleration.
Moreover, we are observing an increase in the number of significant transactions totaling $100,000 or more. Such a dynamic may portend impending profit-taking, which would be another bearish development for LTC in addition to the market’s reversal.