Key Takeaways:
- MATIC price is testing crucial support at $0.690 and the 50-day simple moving average (blue).
- A key bullish trend line with support near $0.690 is also on the daily chart.
- The price could either reverse losses or nosedive toward the $0.60 level.
Polygon’s MATIC is struggling below $0.80. The bulls must protect a close below $0.690 to avoid more downsides in the near term.
MATIC Price (Polygon) Reaches 50-day SMA
Earlier this month, MATIC’s price steadily increased above the $0.70 resistance against the US dollar. The price cleared the $0.80 resistance to enter a positive zone.
However, the bears took a strong stand near the $0.90 zone. A high was formed near $0.891, and the price started declining rapidly, similar to Bitcoin and Ethereum. There was a drop below the $0.820 and $0.800 support levels.
The price traded below the 23.6% Fib retracement level of the upward move from the $0.507 swing low to the $0.891 high. However, the bulls are now fighting near the 50-day simple moving average (blue).
MATIC also tests the 50% Fib retracement level of the upward move from the $0.507 swing low to the $0.891 high. A key bullish trend line with support near $0.690 is also on the daily chart. A downside break and daily close below the trend line support could spark more bearish moves.
The next major support is near $0.655. The price could accelerate lower if the bulls fail to protect the $0.655 support. In the stated case, there is a risk of a drop toward the $0.60 support, below which the bears might target $0.55.
Fresh Increase?
Conversely, MATIC price could stay above $0.690 and start a fresh increase. Initial resistance is near the $0.750 zone. The next major resistance is near $0.80.
If the bulls push the price above the $0.80 resistance zone, there could be a drift toward the $0.880 resistance. In the stated case, MATIC’s price could rise to $0.92. The next major target for the bulls may perhaps be near $1.0.
Overall, MATIC price is trading near crucial support at the 50-day simple moving average (blue). A close below the $0.690 support might increase selling pressure in the coming sessions. Conversely, the price could start a fresh increase toward $0.85.
