• Polygon price forecasts a 16% crash to $0.591, but the nosedive could extend as low as $0.558. 
  • Ethereum Name Service price also eyes a 16% to deep discount level of $8.026. 
  • Arbitrum price could shed 12% and revisit $1.034, which is a key accumulation level from a long-term holders’ perspective. 

As Bitcoin (BTC) price continues to hover around the $30,000 psychological level, investors are looking elsewhere to pour their capital. These days, it is on-chain altcoins on Decentralized Exchanges (DEX) that allow investors with some risk appetite to make big profits. With big returns elsewhere, why would crypto participants want to invest in Centralized Exchange (CEX) altcoins that are hardly moving?

Within this context, these three altcoins have technical scenarios hinting bearish runs:

  1. Polygon (MATIC)
  2. Ethereum Name Service (ENS)
  3. Arbitrum (ARB)

Polygon price continues its nosedive 

Polygon (MATIC) price has shed 25% over the last 20 days and the bottom is not close yet. After slipping below the $0.760-to-$0.714 bearish breaker area, MATIC holders could suffer more losses. Short-sellers, however, are likely to get a good entry if Polygon price manages to sweep the $0.704 level for buy-side liquidity. 

A short entry at $0.704 could be followed by a steep 16% correction to $0.591, resting below what is sell-side liquidity. A similar liquidity pool is present below the $0.558 level as well. The rest of the second target would amount to 20% in total losses for holders. 

MATIC/USDT 4-hour chart

MATIC/USDT 4-hour chart

Invalidation of this short thesis would occur if MATIC price produces a daily candlestick close above the bearish breaker area, extending from $0.760 to $0.714. Such a move would indicate that the buyers are back in action and could propel Polygon by 9.68% to $0.834.

Ethereum Name Service (ENS) price to suffer the brunt of upcoming unlock

Ethereum Name Service (ENS) price has shed 5.61% since retesting the $9.863-to-$10.214 bearish breaker area on August 1. Going forward, investors need to be cautious when thinking about buying ENS dips since August 2 marked an unlock of roughly 4.41 million ENS tokens. The total unlock is 289% of the daily average trading volume. 

Hence, this event could drive ENS price to these key levels – $8.738, $8.321 and $8.026. While the first level is the midpoint of the 49% rally between June 15 and July 14, the other two levels are deep discount levels. 

In total, ENS holders would encounter a total loss of 14% if the altcoin retests $8.026.

ENS/USDT 1-day chart

ENS/USDT 1-day chart

While the outlook for ENS looks bearish, a recovery above the bearish breaker’s upper limit at $10.21 would invalidate it. In such a case, Ethereum Name Service price could revisit the $10.476 range high. 

Arbitrum (ARB) price continues to shed weight

Arbitrum (ARB) price lost 16% of its value since it produced a local top of $1.349 on July 17. After slipping below $1.178, the midpoint of the $0.990-to-$1.366 range, ARB sellers have become extremely confident.

Going forward, ARB price could sweep buy-side liquidity at $1.175, allowing bears an opportunity open short positions and capitalize on a 10% downswing to $1.053. In a dire case, ARB could drop down to retest the bullish breaker area, extending from $0.967 to $1.034. This move would bring the total gains for short-sellers to 12%.

ARB/USDT 4-hour chart

ARB/USDT 4-hour chart

Regardless of the bearish outlook, if ARB recovers above the aforementioned range’s midpoint at $1.1378, it would reinvigorate the sidelined buyers and prompt them to accumulate. Such a move would invalidate the bearish thesis and potentially trigger an 11% ascent to $1.312.

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