The price of Polygon‘s Matic token has continued to remain in a broadening wedge despite the ongoing decline. It currently trades near the wedge’s lower boundary, where a potential buyback could take place.
Following sell actions from the upper boundary of the wedge, Matic has shed a lot of losses in the past weeks as the pressure seems to be reaching an exhaustion point.
This week, it extended bearish actions as the price almost reaches the lower boundary of the wedge forming since last June. The $1.17 and $1.06 levels that serve as potential supports during last week’s surge have now turned resistance.
Apart from that, it just lost a key psychological level of $1 a few hours ago. The price looks extremely weak on the chart but recovery is possible if the wedge’s lower boundary provides dynamic support.
Should the above boundary fail to suppress selling pressure, a surge below it will cause more pain and at the same time validate a mid-term bearish, which could last to $0.6 and perhaps $0.4 before regaining momentum.
But looking at the setups from a technical standpoint, the current market behavior does not appear to extend actions below the wedge. It is much more likely to be respected with a strong bounce.
Matic’s Key Levels To Watch
The crucial support level to watch for a rebound is $0.93, which is well-sited on the lower boundary. A steep fall at this confluence support should roll the price $0.87 and potentially $0.82 in the future. Other support levels to keep an eye on are $0.75 and $0.69.
A significant recovery above the $1 level should fuel an increase to the recently mentioned breakdown levels. The resistance levels above lie at $1.26 and $1.35 before recovering fully back to $1.47 and $1.57, where it started to fall on February 18.
Key Resistance Levels: $1.06, $1.17, $1.26
Key Support Levels: $0.93. 0.87, $0.82
- Spot Price: $0.98
- 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: fellowneko/123RF // Image Effects by Colorcinch
