From April’s high, Polygon (MATIC)’s price depreciated by almost 50% in two months before it found holding support in May. It recently attempted a buy but lacked buying volume to foot a reversal.
The monthly bearish sentiments across the market are still very much intact, causing a lot of “fear, uncertainty, and doubt – FUD” amongst crypto enthusiasts.
As a result of this, Matic remains in a downward position after losing several key levels in the past months. The $0.82 level, which halted selling pressure in the past month, is now acting as temporal support. A pause in the rally has brought a sigh of relief to the market.
Due to low buying volume, it struggled to recover from that support to test the $0.96 level last week but later slipped after meeting resistance. Although, it has charted some gains since the price recovered from $0.88 yesterday.
This recovery is likely to become significant in the next few days if the buying volume continues to increase by the day. We can see that yesterday’s candles closed strongly above the previous one. A repeat of this candle pattern could allow the price to test $1 in the coming days.
While the temporal support continues to hold, a crack below it could trigger a continuation of the short-term bearish scenario until Matic finds a strong level for a rebound. Despite the recent drops, the price is still up 46% on a yearly scale.
MATIC’s Key Levels To Watch
Following the latest price increase, the potential resistance level to keep an eye on is last week’s rejection level of $0.95. An increase above it should rally the price to $1 and potentially $1.06.
If the price drops and cracks the $0.87 and $0.82 support levels, the last defense line for the bulls would be $0.75.
Key Resistance Levels: $0.95, $1, 1.06
Key Support Levels: $0.87, $0.82, $0.75
- Spot Price: $0.898
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Image Source: inueng/123RF // Image Effects by Colorcinch
