MATIC Prices Crash Post-Retest, Will It Fall Below $0.75?
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Despite raising $50 million Polygon Web3 Venture Fund, the MATIC prices plunge to the $0.75 demand zone as Bitcoin falls to the $20K mark. However, the RSI divergence projects the possibility of a double bottom reversal. Will this technical indication result in a bullish reversal, or the market condition drive it lower to $0.50?
Key Points:
Source - Tradingview
MATIC Technical Analysis
Polygon (MATIC) price chart's sudden increase in selling pressure after the bullish reversal from $0.75 retests the broken resistance trendline. And the recent bearish comments from the FEDs fuel the post-retest reversal resulting in a drop to the $0.75 mark.
However, the lack of bearish follow-through and the bullish candle at the demand zone increases the reversal possibility. The prices have been struggling to rise above the 50-day SMA moving close to the broken trendline, reflecting a high selling pressure at the SMA.
If the double bottom pattern successfully reverses the trend, the MATIC prices may struggle again at the 50-day SMA. However, a downtrend below $0.75 can reach the psychological mark of $0.50.
Technical Indicators
The RSI slope maintains a sideways trend below the halfway line displaying a bullish divergence with the price action. Furthermore, the MACD indicator shows the fast and slow lines support a declining trend below the zero line. Hence, the MATIC prices still have hope for a bullish reversal.
Resistance Levels: $0.85 and $1
Support Levels: $0.75 and $0.50