Polygon (MATIC) retested a yearly low after shedding a lot of loss in the past months. It held that low as support in the past week and remained indecisive. Now looking for a rebound before it decides on where next to head.
During the past weeks of drops, Matic fell hard and broke through the $1 mark level, sustained the momentum and marked a low at $0.85 last week. It bounced slightly from that low and entered a consolidation phase.
It remained in that phase since the start of this week. Although, it tried to move out of the phase but quickly dropped back and continued to trade calmly around $0.874.
Meanwhile, the price looks overstretched after witnessing a steady decline for almost three months. Even though the selling pressure appears to have cooled off for more than a week now, the bearish momentum still looks intact on the daily chart.
An expansion from the ongoing consolidation phase would determine where the price will head next. Considering an upsurge, Matic could recover to the previous breakdown level before it resumes bearish.
If a down surge occurs, especially beneath the recent low, the price will continue to stretch until it encountered a strong support, technically reaching an exhaustion point. As it stands now, Matic is still in the hands of the bears.
MATIC’s Key Levels To Watch
The broken wedge remains a key area for a retest. Before that, the resistance level to watch on the way up is $0.95. The next crucial level for the test lies at $1, which lies above the resistance line. The higher resistance level to keep in mind is $1.19.
Following a crack below the holding of $0.82, the immediate support to keep in mind is $0.75, followed by $0.7 and potentially $0.65.
Key Resistance Levels: $0.95, $1.06, 1.19
Key Support Levels: $0.82, $0.75, $0.7
- Spot Price: $0.874
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.