Polygon (MATIC) consolidated for days after dropping from resistance last week. It attempted a breakdown today but encountered support as selling pressure holds. Will the price breakthrough?
The past months of increase have been so impressive for Matic following a significant recovery from $0.31 – technically considered as the 2021 bear cycle bottom. Although it could revisit that area if the price collapse again.
Following a week’s bounce to the $1.25 level, Matic saw a rejection at that level and pulled back. Due to a drop in the selling volume, the price remained calm and entered a consolidation phase for days.
Just a few hours ago, the price fell slightly to the $1.06 support following notable losses across the entire crypto market today. A crack at this holding support will increase the chances for more dips towards the $1 key level and potentially lower.
However, the mid-term bullish trajectory would still be intact if the wedge’s lower boundary can provide support one more time. A bounce at this support is likely to trigger a strong bullish impulsive movement to the upper boundary of the wedge.
Let’s say a bounce fails to occur and the price manages to plummet the ten-month wedge, we should expect a huge sell-off capable of reversing the trend completely in favor of the bears. There is still hope for the bulls at the lower boundary of the wedge.
MATIC’s Key Levels To Watch
The current holding support is temporal. The potential level to consider as support is the previous bounce point of $0.95 in case of more drops. A wedge breakdown from there should slip the price to $0.87 and $0.82, respectively.
As of now, the resistance level to watch for a rebound is $1.17. An increase above $1.26 should propel the price higher to $1.35 and $1.47, with further recovery to $1.57 in the future.
Key Resistance Levels: $1.17, $1.26, 1.35
Key Support Levels: $1.06 $0.95. 0.87
- Spot Price: $1.08
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: ivanbabydov/123RF // Image Effects by Colorcinch
