MATIC Technical Analysis: Will Polygon Prices Drop To $0.80?

Key Technical Points:

Past Performance of MATIC

As warned in our previous analysis, the MATIC prices fail to surpass the psychological mark of $1 due to increased selling pressure evident by the higher price rejection candles. Hence the possibility of a rounding reversal increase may soon top result in a price drop to the support zone at $0.80. Furthermore, the price action one is of a double top pattern forming with the neckline at the $0.80 support zone.

Source - Tradingview

MATIC Technical Analysis

The MATIC price action will complete a double top pattern if the selling pressure continues to grow, resulting in a price drop to $0.80. And in case of a bearish support zone breakout, the price fall may break under the supporting trend line and the 50-day SMA to test the $0.57 support level.

As the market prices change about the 100-day SMA, the bullish influence results in a positive turnaround for the 100 and 50-day SMA. This increases the likelihood of a bullish crossover, but downtime continuation might delay this event.

The RSI slope shows a substantial bearish divergence in the forming double top pattern marked in the daily chart, which warns of a downfall shortly. Moreover, the MACD indicator showcases an increase in selling pressure as the fast and slow lines struggle to avoid a bearish crossover. Furthermore, the MACD histograms start a declining trend teasing a potential fall to the zero line.

In a nutshell, the MATIC technical analysis suggests a high possibility of a selling spree leading to a price drop to $0.80.

Upcoming Trend

If the selling pressure grows throughout the day, the MATIC prices will fall sharply to the support zone at $0.80. However, the buyers at the support trendline will attempt to cushion the fall and try to reverse the downtrend.

Resistance Levels: $1 and $1.50

Support Levels: $0.80 and $0.57