Key Takeaways:
- MATIC price is gaining bearish momentum below the 0.940 support.
- It traded below a key contracting triangle with support at $1.10 on the daily chart.
- The price is signaling more losses toward the $0.755 support zone.
Polygon’s MATIC is plunging below the $0.95 support. The bears seem to be in control and likely aiming for a retest of the $0.755 support.
Polygon (MATIC) Price Takes Major Hit
In Mid-April 2023, MATIC price saw a major rejection near the $1.20 resistance against the US dollar. The price started a downtrend below the $1.15 support zone.
The bears pushed the price below the $1.10 and $1.00 support levels. Besides, the daily chart had a break below a key contracting triangle with support at $1.10. It opened the doors for a sharp decline below the $0.94 support and the 50-day simple moving average (blue).
The price is now trading near the 1.236 Fib extension level of the upward move from the $0.943 swing low to the $1.249 high. The current price action is bearish, and pressure on Bitcoin and Ethereum is also sparking downsides in MATIC.
Initial support is near the $0.85 level. The next major support is nearly $0.80. The main support sits near the $0.755 zone. It is close to the 1.618 Fib extension level of the upward move from the $0.943 swing low to the $1.249 high.
If the bulls fail to protect the $0.755 support, MATIC could face much selling pressure. In the stated case, there is a risk of a drop toward the $0.62 support.
Is Recovery Possible?
Conversely, the bulls might attempt a recovery wave above the $0.90 level. On the upside, immediate resistance is near the $0.940 level (the recent breakdown zone). The next major resistance is near the $1.05 level and the 50-day simple moving average (blue).
A clear move above the $1.05 resistance zone could set the pace for a decent increase. MATIC’s price could test the $1.10 level in the stated case. Any more gains might open the doors for a move toward the $1.20 resistance.
Overall, MATIC price is signaling a clear downtrend below the $0.94 support. The price might drift toward the $0.755 support if the bears remain in action. If not, there might be a recovery wave toward the $1.05 resistance.
