MATIC Price: Bull Market Tested as Polygon Slides From the Highs

Summary:

With the MATIC price 30% below last week's high and the crypto market under pressure, this article looks at Polygon's near-term prospects.

With the MATIC price 30% below last week’s high and the crypto market under pressure, this article looks at Polygon’s near-term prospects.

Polygon (MATIC) lost 12% in one-way traffic on Monday as crypto market sentiment took a turn for the worse. The broad-based selling in altcoins yesterday followed Bitcoin’s failure to hold gains above $50k. The market leader showed signs of strength over the weekend and traded as high as $50,800 on Sunday. However, the rally attracted selling, forcing BTC down $5,000 into yesterdays low. Subsequently, the MATIC price has given back all of the gains made earlier this month and may go lower still in the immediate future.

Polygon Price Forecast

The daily chart shows that Polygon ran into overhead supply approaching $2.500 (as predicted in last week’s report). As a result, the MATIC token has dropped below the 50-Day Moving Average at $1.870 (now resistance)and working towards the 100-DMA at $1.599.

Below the 100-DMA, a rising trend line at $1.470 and the 200-DMA at $1.432 provide considerable confluent support. Therefore, I expect scale-down buying towards $1.500. And as long as MATIC respects the 200-DMA, it should maintain its long-term bullish trajectory. But the danger for bulls is a close below the 200-DMA. In that event, a slide towards $1.000 is possible.

Presently, MATIC is trending higher and shows no immediate signs of stress. Therefore, as long as the crypto market doesn’t capitulate, Polygon should remain stable. However, a close below $1.432 would indicate the bullish momentum has broken down, encouraging selling.