Polygon (MATIC) slips 23% below key support, more pain ahead if bulls don’t act soon

• Polygon’s MATIC is now trading 67% below its all-time high this year and 23% below the crucial support of $1
• If current support also fails, then a further drop down to $0.43 could be possible
• Bulls need to push MATIC to $1

JAIPUR (Coinchapter.com) – MATIC, which underpins the in-demand Ethereum layer 2 solution Polygon, has gone for a toss. Literally. Until a week back, the MATICUSDT token stayed firmly supported above the $1. But a flurry of selling orders led to the blockchain asset failing to hold the line. So now, the Polygon native cryptocurrency risks going further down further in the absence of sufficient buying impetus.

Also Read: Polygon bulls take a nap as a triangle setup threatens 50% MATIC price crash

The “trend is obviously down,” as per Michael van de Poppe. But there’s still hope if the current support level holds. If not, then bulls will have to endure more pain ahead of them. “The first level of support for a potential bounce, that’s currently. Resistance; $1. Next level of support; Around $0.43.” said, van de Poppe. 

Crucial MATIC Support Turned Resistance

$1.05 was the de-facto support for MATIC prices. But it has transformed into a crucial resistance, with $0.8 acting as support for the moment.

Now the immediate task ahead of bulls is to reclaim the $1.05 resistance. And undo all losses by keeping the ascent up at least until $1.6. 

However, from the looks of it, a further drop is nigh as the MACD wave has been bearish since June and is just halfway through its current bearish cycle. MATIC’s asset strength has taken a hit with dropping RSI values.

Also Read: Upsides Remain Limited as Polygon’s MATIC Token Reels From Selling Pressure

Plus, MATIC’s trend from April end to date perfectly fits the `inverse cup and handle pattern. Especially after the recent correction below $1. This, combined with a descending triangle formation, nails the possibility of a downtrend.

A downside breakout below the triangle support ($1.05) has already begun. The degree of the price drop would be roughly equal to the length of the perpendicular side of the triangle, which works out to be approximately 40%.

A 40 % drop from current price levels would push MATIC down to $0.624 or below or $0.43, as van de Poppe quoted. Short sellers can comfortably initiate new positions but of course without excessive leverage.