Polygon‘s MATIC lost momentum this week and fell to a critical trading level. The weekly 17% loss has brought the price to a key support level where the next direction of the market would be determined.
After a series of higher highs and higher lows in the past ten months, Matic has once again dropped to the lower boundary of the wedge – looking for solid support. It currently trades at $1
As we can see in the chart below, the price seems to be respecting the wedge right now while on the verge of dropping further. This could result in a mid-term bearish if the price successfully breaks through.
Because this lower boundary has been providing a rebound in the past months, Matic may repeat the pattern and regain momentum in the next few days. Let’s say a bounce is produced, it must reclaim the $1.2 level to validate an uptrend.
Failure to reclaim that level could put the asset at a high risk of breaking below the wedge. And if that happens any moment from now, the key level to watch for drops would be $0.65. As of now, Matic looks bearish but there’s hope for a recovery.
MATIC’s Key Levels To Watch
While anticipating the next move, the closest support level to watch for a breakdown is March’s low of $0.95. It is then followed by the $0.87 and $0.82 support levels before slipping lower.
However, if the price bounces back, the first resistance level to overcome lies at the $1.06 level, followed by $1.17 and $1.19 on the hourly chart. The higher resistance levels to watch next are $1.26 and $1.354 before rallying to the upper boundary of the wedge at full speed.
Key Resistance Levels: $1.06, $1.17, $1.26
Key Support Levels: $0.95, $0.87, $0.82
- Spot Price: $1
- 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: moxumbic/123RF // Image Effects by Colorcinch
