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MATIC, SHIBA and Other Altcoins Bleed as Bitcoin Retraces by 2.5%

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Tue, 12/28/2021 - 10:54
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Arman Shirinyan
Altcoins are losing their value as the crypto market loses $100 billion in capitalization
MATIC, SHIBA and Other Altcoins Bleed as Bitcoin Retraces by 2.5%
Cover image via stock.adobe.com

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Contents

Bitcoin and the altcoin market have shown the deceleration of the recovery rally by losing from 2.5 to 5% of the previous growth. While the reversal should not be considered critical, it could still bring unpleasant results to the market at the end of the year.

MATIC ATH reversal

As the majority of tokens or coins are reversing after reaching local highs, Polygon's Matic is reversing after reaching its new ATH of $2.90. The reversal then appeared after the asset touched the $2.92 zone. Currently, the asset is trading at $2.60 after testing the $2.50 support.

Matic Daily Chart
Source: TradingView

Even after a short-term correction, Matic still remains in the uptrend that has been forming since the middle of December. The trendline's support is currently sitting at $2.50.

Shiba Inu rally stops

Unfortunately for its investors, the Shiba Inu recovery rally lost its initial momentum by retracing by 8.3% from the local top. Prior to the reversal, the weekly profit of the meme-based token was staying at 30%.

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The only condition on which the rally would be considered recovered is a breakout above the $0.0000395 zone and trading of the asset above $0.00004.

Bitcoin's sudden retrace

The majority of investors were expecting a true "Santa Claus rally" after Bitcoin showed two price spikes resulting in a 12% price increase in less than a week. But unfortunately for the crypto market, more than $100 billion has been withdrawn from various digital assets, resulting in a slight retrace of the majority of the altcoins and of Bitcoin itself.

Bitcoin Daily Chart
Source: TradingView

Some traders and experts from the community assumed that the sudden correction might happen close to New Year's Eve, when the majority of market participants historically cash out a portion of their funds.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.