Polygon (MATIC) continued its roller coaster amid the latest bloodbath across the global market. It recently broke down from a mid-term channel after passing through multiple support levels. More drops lie ahead.
After witnessing a lot of bearish actions in the past months, Matic lost the $1 psychological level in late April and took a break. This break led to a two weeks consolidation above the $0.95 level due to low volatility.
Meanwhile, the price retested the psychological level and the ascending channel as resistance during the consolidation phase. After that, it started to show signs of weakness.
This week, selling volume increased, volatility became high and the price fell off the consolidation phase with a sudden surge. These drops have brought the price near a key support level of $0.82.
From the look of things, this support may not contain the latest bearish pressure. And if it does, we can expect a little relief in the market before the bears mount pressure again.
There are no signs of the bulls at the moment. If they show up and take control of the price, they would need to face a lot of obstacles on the way up. The grey ascending trendline remains an important resistance for a bullish break.
So far, Matic has lost roughly 20% in the past week. The percentage is expected to increase if the price drops further.
MATIC’s Key Levels To Watch
While the price trades near the $0.82 level, the next support to keep an eye on is $0.75 in case of more drops. The support level to watch below it is $0.7.
If a bounce occurs, the closest resistance level for a retest is $0.87 where it initiated sell today. The resistance level above it is the weekly breakdown level of $0.95 and the $1 psychological level, all mentioned earlier above.
Key Resistance Levels: $0.87, $0.95, $1.06
Key Support Levels: $0.82, $0.75, $0.7
- Spot Price: $0.836
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: velishchuknatali/123RF // Image Effects by Colorcinch
