MATIC, Chainlink, Polkadot: Should you purchase these alternatives right now?

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We discovered buy-range zones for Ethereum, Cardano, and Dogecoin in a recent post. The current data offered in this post adheres to the same rules as the prior iteration. Chainlink, Polkadot, and Polygon are the assets under consideration (MATIC).


Chainlink – Is it already time to buy?

Source: LINK/USDT on TradingView

While the Chainlink community may disagree, LINK’s market momentum has slowed dramatically in recent weeks. However, as a point of correction, LINK may already be in its purchase zone. LINK has already challenged its demand zone of $20-$17.5 in the last several hours.

Buying inside this region should be great structurally, but LINK may fall farther into the demand zone. It had reached a threshold threshold of $15. This $15-range level is significant since the price has not closed below this range since January 4th.

Source: Sanbase

In terms of activity, LINK is not in a strong position, as active addresses have decreased to levels last seen in the fourth week of October 2020. According to further statistics, the average trading returns for LINK have fallen to the third lowest level in the last year.

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Having said that, the prior two lows were met by a robust price bounce. Overall, traders must exercise greater caution when it comes to Chainlink buy-order size.

Polkadot – Mirroring ETH’s condition?

Source: DOT/USDT on TradingView

During our Ethereum research, we highlighted how the demand zone for Ether is more extensive since its critical range is located between the zone. Polkadot was in a similar predicament, as its valuation appeared to be stabilising just above the support range ($20-$18.5) at the time of publication.

Technically, the demand zone should be between $17 and $14, but a decline and closing below $15 would be a significant warning sign. As a result, purchase entry should be considered once the token has recovered to about $17.


Source: Sanbase

Furthermore, fundamentals and societal mood were not big supporters of DOT at the time of publication. Trading volume has been quite low for 2021, and social media have shown a lack of market sentiment. While a rebound may occur, there appeared to be a significant lack of impetus to propel severe pullbacks.

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MATIC – A tale of two demands?

Source: MATIC/USDT on Trading View

At the time, the industry appears to be more focused on Polygon (MATIC) than any other cryptocurrency. And appropriately so, since MATIC was the only asset to achieve close recoveries around its ATH levels following the May 19th meltdown. However, during the last three weeks, it has been a never-ending parade of red candles.

Identifying the demand zone for MATIC has become simple now that there are essentially two ranges available. Both, however, are unattainable. MATIC’s growth has occurred during the last few months, therefore its initial demand zone may be represented as $0.385-$0.30.

To keep the price structure optimistic, the bounceback should go from $1.07 to $0.75. Its key range continues around $0.55, over which the chance of reaching the second demand zone increases. Is the project still geared towards relevance?

Source: Sanbase

In terms of network expansion, the number of new addresses produced has significantly decreased in recent days. User adoption may be diminishing as well, since the project appears to be losing traction.

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According to the MVRV ratio, MATIC users are now losing money, and the average MATIC holder has lost three times his initial investment. Purchasing MATIC near $1 is still an excellent long-term investment, but buying in the present demand zone is risky.

Source: Sanbase

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