MATIC price has been on a downward spiral since the previous week, except some bounce back on Sunday. The price has thrashed the psychological support level near $1.60 also coincides with the breach of the 200 DMA.
- MATIC price dropped below 200 DMA on Monday.
- The polygon EIP-1559 doesn’t warrant a reversal in the trend.
- Selling could accelerate below $1.330.
MATIC drops 18% in a single day
MATIC’s price has dropped 18% on Monday and is likely to extend its decline beyond $1.30. A big black candlestick dictates the bear’s dominance beyond the lows of October 15. The recent breach of the 200 DMA at $1.615 after hovering above it there for more than a year adds to the ongoing slaying in MATIC.
The daily relative strength index (RSI) remains in the oversold zone putting a bearish spin on Polygon. Furthermore, the price has tried to form lower high and lower low formations extending from the ATH at $2.92. The price retraced almost 35% and made a low of $1.895 on January 8 to retrace back to the horizontal resistance line at $2.448. This also forms the ‘double top’ formation, which resulted in the current meltdown in the Polygon (MATIC) price.
Another momentum oscillator, the MACD (Moving Average Convergence Divergence) trades below the midline with a bearish crossover. At the press time, Polygon (MATIC) is trading at $1.32 combined with a more than 1% fall in volumes at $1.738, 920. This suggests some buyers could see some discount buying opportunities in the coming few sessions.
On the flip side, if the price sustains the $1.30 level with rising in volumes then some bounce-back could be expected at the price. The interim resistance is placed at $1.60.
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