Polygon Price Analysis: MATIC Price Losing 200 DMA Support Suggesting Further Dip

By Brian Bollinger
January 29, 2022 Updated January 29, 2022
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MATIC's Fresh All-Time High and Fantom's Bullish Price Action: Next Vital Price Levels

In these last two weeks, MATIC price lost around 30% dropping to the 3-month low of $1.5. The coin hovering above this support shows a few lower price rejection candles, indicating the presence of demand pressure. Can buyers reclaim the 200 DMA or seller will dominate again?.

Key technical element

  • The MATIC chart shows a bearish crossover of the 20-and-100-day DMA
  • The intraday trading volume in the Polygon coin is $1.5 Billion, indicating a 31% loss.

Source-Tradingview

In our previous coverage of the Polygon coin, the MATIC/USD pair retested the rising trendline with the hope of a bullish reversal. However, last week’s crypto bloodbath violated this crucial support trendline, causing a 30% devaluation from the fallout point($2).

  • The MATIC price plummeted to the three months low support of $1.5, and from last week it is hovering above this support to gather sufficient demand.
  • This recent free fall engulfed the 200 EMA line, and the price is currently retesting this flipped resistance. Moreover, the 20 and 100 DMA offers a bearish crossover, encouraging ongoing selling.
  • The Moving average convergence divergence remains bearish as the MACD and signal line moving below the neutral zone. However, the distance between these lines is shortening, hinting at a bullish crossover.

MATIC Bulls Need To reclaim $1.78 To Initiate A Recovery Rally

Source- MATIC/USD chart by Tradingview

The MATIC price currently trading at $1.66 registers a 23% gain from the new low of $1.32. If the bulls could keep up this momentum, the coin price will breach the nearest resistance of $1.78 and 200-day DMA, indicating a recovery opportunity for long traders.

Moreover, the falling Average Directional Index slope(18), suggests sellers are losing momentum.

The important resistance levels for the coin are $1.78, followed by $2, on the flip side, the support levels are at $1.45 and $1.1.

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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