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MATIC is attempting to form a short-term base above $1.4500. A level, the Polygon price must hold for the recovery to stay intact.
Polygon (MATIC) is last trading at $1.4800 -$0.22 (-1.44%)
MATIC’s market cap has slipped below $10 billion and is currently just north of $9b. Polygon sits just above Stellar Lumens as the 17th largest crypto asset by valuation.
Layer-2 scaling solution MATIC has failed to hold on to the gains made earlier this week. Crypto market sentiment has soured following Jerome Powell’s hawkish tone at Wednesday’s FOMC press conference.
The week started with a positive tone. Bitcoin’s climb above $40,000 inspired an impressive recovery in altcoins.
Subsequently, the Polygon price jumped 47% from the June 12th low of $1.1587 before stalling at $1.7105 three days later.
However, BTC has since lost 10% of it’s value, and MATIC has followed suit.
The 2-hour chart shows over the last 3 days, MATIC has been trending lower in a parallel channel. This pattern is referred to as a bull flag and often signals a period of consolidation before the price legs higher.
If MATIC can unshackle itself from this channel and clear $1.5150, it’s likely to retest Wednesday’s high. That being said, for now, the price remains locked in this descending channel.
Of note, MATIC is forming a double-bottom around $1.4450 which may be encouraging.
However, if Polygon loses this support, the next stop should be the lower end of the descending flag at $1.3660.
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