Polygon‘s MATIC lost momentum in the past month after posting several gains for six weeks. The price looks weak as it is yet to find a solid level for recovery.
Aside from the early year increase, which saw the price to a multi-month high in February, MATIC has returned over 300% gains since it started recovery last June.
The past months of higher highs and higher lows triggered a significant shift in the trend as the bulls gain control. As shown on the daily chart, the price is trading well in an ascending wedge.
In February, the price tested the wedge’s resistance and rollover after tapping $1.57. It lost roughly 13% in the past week and has shown no sign of recovery as the price swings lower. MATIC is looking for a solid rebound level. The wedge’s lower boundary could provide support.
If this lower boundary fails and the price falls below it, MATIC will paint more reds in favor of the bears. And this could cause a devastating moment for the bulls as they count losses.
Adding to the fact that Bitcoin’s price is indecisive for some days, causing major altcoins to bleed heavily, MATIC is expected to record more losses until it finds a solid level for a rebound.
For now, the bears are in charge. The price has dropped by more than 3% since yesterday, with a market cap of $10.5 billion at press time.
MATIC’s Key Levels To Watch
Source: Tradingview
MATIC is still falling. The nearest support level to consider for a decrease is $1.17. The lower support is found at $1.06, followed by $0.93, which sits right on the wedge’s lower boundary.
A bounce on the wedge could skyrocket the price to $1.6 in the next leg up. But if MATIC finds support earlier, the potential resistance levels to keep in mind are $1.35 and $1.46 before breaking $1.57.
Key Resistance Levels: $1.35, $1.46, $1.57
Key Support Levels: $1.17, $1.06, $0.93
- Spot Price: $1.23
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: inueng/123RF // Image Effects by Colorcinch
