Key Takeaways:
- MATIC price started a major increase from the $0.720 support zone.
- It is approaching a major bearish trend line with resistance near $0.820 on the 4-hours chart.
- The price could rally further if there is a clear move above $0.820 and $0.850.
Polygon’s MATIC is up over 10% and trading above $0.80. The price remains well supported and might aim a clear move towards $1.0.
Polygon (MATIC) Price Gains Bullish Momentum
Yesterday, MATIC price saw a major decline below $0.78 against the US Dollar after the US CPI release. The price declined sharply below the $0.76 and $0.75 levels.
However, the bulls were active near the key $0.720 support zone. The price formed a base above $0.720 and started a fresh increase, similar to ethereum and bitcoin. There was a steady increase above the $0.750 and $0.760 resistance levels.
MATIC 4-hours price chart | Source: MATICUSD on TradingView.com
The bulls surpassed the $0.80 resistance level and the 50 simple moving average (4-hours, blue). The price even cleared the 76.4% Fib retracement level of the downward move from the $0.8405 swing high to $0.716 swing low.
It is now approaching a major bearish trend line with resistance near $0.820 on the 4-hours chart. A clear move above the trend line resistance might send the price towards the $0.8405 high.
The next major resistance is near the $0.870 level. It is near the 1.236 Fib extension level of the downward move from the $0.8405 swing high to $0.716 swing low. A clear move above the $0.850 resistance zone could set the pace for another strong increase.
In the stated case, the price could test the $1.00 level. Any more gains might open the doors for a move towards the $1.088 resistance.
Conversely, MATIC price might fail to clear the $0.82 resistance zone or $0.84. In the mentioned case, the price could start a downside correction. An initial support is near the $0.80 level. The next major support is near $0.780.
A close below $0.780 may perhaps start a steady decline. In the stated case, the price might dive towards the $0.750 support, below which there is a risk of a move to $0.72.
Overall, MATIC price is gaining pace above the $0.788 and $0.80 levels. If the bulls remain in action, it could rise towards the $1.00 resistance. If not, there could be a drop towards $0.75 in the near term. The main breakdown support sits at $0.72.
