Matic: Sell in May and go away 🐻⁉️
Updated
📆 We can see that the month of May is a crucial month.
The range contained in the 🟥 red rectangle has already been tested several times, and in May last year we had a sharp drop.
Here we are again in the month of May, on top of that range.
Will it fall again? I don't know.
But if it drops again, I would bet on a drop to some Fibonacci region drawn on the chart, and after any reversal signals I would look for an entry.
But before that, I believe that there will be a spike in the rise, and depending on the context, it will not even fall as expected. Just having a crystal ball to know.
🔎 Doing a complementary analysis using on-chain data, we can see that Uniswap's liquidity pools suffered a relevant decrease in the month of May:
🔎 And the total trade volume on Uniswap (in USD) also has this setback:
🔎 Another item that I found interesting to point out, looking at the on-chain data, is the "New address created with non-zero starting balance" in the blockchain, which broke down an important level:
🟢 Despite everything, I remain bullish.
It's not because the last month of May was bad that we will necessarily now have a bad month too.
The last three arrows in the red rectangle indicate that there was a test in this region, and the price did not break down, which could indicate that at least we will have a rebound if there is a stronger drop.
Another thing to note is that the TVL (Total Value Locked) in blockchain seems to be showing signs of reversing:
The range contained in the 🟥 red rectangle has already been tested several times, and in May last year we had a sharp drop.
Here we are again in the month of May, on top of that range.
Will it fall again? I don't know.
But if it drops again, I would bet on a drop to some Fibonacci region drawn on the chart, and after any reversal signals I would look for an entry.
But before that, I believe that there will be a spike in the rise, and depending on the context, it will not even fall as expected. Just having a crystal ball to know.
🔎 Doing a complementary analysis using on-chain data, we can see that Uniswap's liquidity pools suffered a relevant decrease in the month of May:
🔎 And the total trade volume on Uniswap (in USD) also has this setback:
🔎 Another item that I found interesting to point out, looking at the on-chain data, is the "New address created with non-zero starting balance" in the blockchain, which broke down an important level:
🟢 Despite everything, I remain bullish.
It's not because the last month of May was bad that we will necessarily now have a bad month too.
The last three arrows in the red rectangle indicate that there was a test in this region, and the price did not break down, which could indicate that at least we will have a rebound if there is a stronger drop.
Another thing to note is that the TVL (Total Value Locked) in blockchain seems to be showing signs of reversing:
Trade closed: stop reached
To contribute to my work:
⚡Bitcoin Lightning: forwardocean64@walletofsatoshi.com
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⚡Bitcoin Lightning: forwardocean64@walletofsatoshi.com
🟠Bitcoin: bc1qv0j28wjsg6l8fdkphkmgfz4f55xpph893q0pdh
🔵PayPal: paypal.com/donate/?hosted_button_id=D9KRKY5HMSL9S
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