MATIC price declined heavily below the $1.25 support. Polygon bears remain in action, and they might aim a move towards the $1.00 support zone.
- MATIC price started a fresh decline from well above the $1.30 resistance against the US dollar.
- The price is trading below $1.20 and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $1.15 on the 4-hours chart of the MATIC/USD pair (data source from Kraken).
- The pair could continue to slide if there is a break below the $1.10 support zone.
Polygon’s MATIC Price Dives 20%
In the past few days, polygon’s price saw a strong decline from well above the $1.30 zone. MATIC gained pace below the $1.25 and $1.22 support levels.
The price is down over 20% in the past few days, unlike bitcoin and ethereum. The price even tested the $1.10 level. A low is formed near $1.092 and the price is now consolidating losses. It is now trading below $1.20 and the 100 simple moving average (4-hours).
MATIC price is now facing resistance near the $1.15 level. There is also a major bearish trend line forming with resistance near $1.15 on the 4-hours chart of the MATIC/USD pair. The trend line is near the 23.6% Fib retracement level of the downward move from the $1.2996 swing high to $1.092 low.
The first major resistance is forming near the $1.20 zone. It is close to the 50% Fib retracement level of the downward move from the $1.2996 swing high to $1.092 low.
Source: MATICUSD on TradingView.com
If there is an upside break above the $1.20 resistance level, the price could start another strong increase. In the stated case, the price could rise steadily towards the $1.25 level or even $1.28.
Downside Break in MATIC?
If MATIC price fails to rise above the $1.15 and $1.18 resistance levels, it could continue to move down. An immediate support on the downside is near the $1.10 level.
The main support is near the $1.08 level. A downside break below the $1.08 level could open the doors for a fresh decline towards $1.00. The next major support is near the $0.945 level.
Technical Indicators
4-hours MACD – The MACD for MATIC/USD is gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for MATIC/USD is now below the 50 level.
Major Support Levels – $1.10 and $1.08.
Major Resistance Levels – $1.15, $1.18 and $1.20.