Polygon Price Analysis: MATIC Price Sees 20% Fall Before Hitting the Next Support
From early May to June, the MATIC/USDT pair resonated in a narrow range stretched from $0.75 to the $0.51 mark. However, the sellers took advantage of the recent crypto crash and breached the bottom support level($0.51). The breakdown rally plummeted the altcoin to $0.388 and suggests further decline before hitting the next significant support of $0.3.
Key points
- The 20-day EMA provides a dynamics resistance to MATIC price
- The Bollinger band indicator a relief rally to the $0.5 flipped resistance
- The intraday trading volume in MATIC is $2.27 Billion, indicating a 36.5% gain.
Source- Tradingview
After the Polygon(MATIC) holders lost the monthly support of $1.3 on April 26th, the resulting downfall slumped the altcoin to the $0.5 psychological support, registering a 60% loss. The coin price consolidation above this new support for nearly a month period, responding to the widespread uncertainty in the crypto market.
However, last week the coin traders faced another wave of selling pressure which dumped the MATIC price below the $0.5 support on June 12th. The downfall represented by six consecutive red candles in the daily chart indicates a 42% loss.
Furthermore, if the selling pressure persists, the MATIC price would continue to slide lower as the next significant support level is at the March-April 2021 bottom support of $0.3
On a contrary note, an unexpected pullback may drive the coin price back to $0.5 flipped resistance, offering a retest entry opportunity for interested short-sellers.
Technical Indicators
Vortex indicator: Following a bearish crossover, the VI+ and VI- slopes display an instant spread accentuating the strong selling momentum. Therefore, with weakness reflected in indicators, the MATIC price is more likely to hit $0.3 support.
Bollinger band: The instant price drop has breached the lower band of the Bollinger band indicator, suggesting overextended selling from traders. Thus, the coin price would need a minor pullback to stabilize the ongoing downtrend.
- Resistance levels- $0.56 and $0.75
- Support levels- $0.3 and $0.187
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