MATIC price is retracing yesterday’s pump, and this morning is back below $1.0000. But can Polygon recover its bullish momentum, or are lower prices ahead?
Polygon (MATIC) is following the broader market lower this morning as investors adjust to Amazon’s (NASDAQ: AMZN) denial that it will accept crypto payments by the end of this year.
MATIC is trading at $0.9716, lower by $0.440 (-4.40%)
Over the weekend, City AM revealed an insider at retailer Amazon had confirmed Bitcoin transactions were imminent.
“It begins with Bitcoin – this is the key first stage of this crypto project, and the directive is coming from the very top… Jeff Bezos himself.”
This news sent the whole complex higher, resulting in the MATIC price improving by more than 25% to $1.1712.
However, the claims have since been refuted by Amazon, which insists they have no such plans.
Prices reacted as you would expect, with Bitcoin reversing sharply lower, exerting price pressure on altcoins. As a result, Polygon is 16% below yesterday’s $1.1712 high.
Although, for now, the positive outlook remains intact. However, MATIC must remain above $0.8560 for that to continue.
Looking at the daily price chart, we see Polygon has broken above the resistance of a descending trend line from the May high.
Furthermore, the price remains well above the significant 200-day moving average at $0.6887.
However, yesterday’s rally fell short of clearing the 50 and 100 DMA’s at $1.2316 and $1.1676, respectively. On that basis, until MATIC clears $1.2316, it may be vulnerable to slipping back below the trend line, resistance-turned-support at $0.8560.
However, should the MATIC price scale the moving averages, the bulls may target $1.7600.
Conversely, below $0.8560, a return to the 200 DMA at $0.6887 looks likely.
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