Crypto currency background with various of shiny silver and golden physical cryptocurrencies symbol coins, Bitcoin, Ethereum, Litecoin, zcash, ripple.
The Polygon price is in a tight spot here. After failing to break out on the upside, MATIC is close to dropping below $1.00 and potentially much lower.
Polygon is last trading at $1.0760, up $0.0026, (+0.23).
Despite being considered one of the more promising projects in the crypto-verse, the Polygon price is under serious pressure this week. Over the last 7 days, MATIC has lost 11.50%, making it one of the worst performers out of the top 20 cryptos.
MATIC’s market cap has slipped to $6.7 billion. Furthermore, it is now ranked as the 16th largest cryptocurrency.
The entire market has seen mixed results this week. Bitcoin has reversed around 10% from $36,500 and is now down 5.6% over the last 7 days. However, Ethereum has eeked out a 4.20% increase over the same period, although it has started to turn lower similarly to BTC.
Weakness in the broader market weighs heavily on MATIC. This has resulted in the price retreating towards a critical area of support.
The daily chart shows that the Polygon price remains in the grip of a concise triangle formation. The lower end of this pennant is underpinned by horizontal support at $1.0200. This links the previous all-time high from the 30th of April and the significant 100-day moving average at $10203.
Therefore, $1.0200 should be viewed as an important support level for MATIC. Should the price lose this safety net, a logical target is the 4th of May low at 0.6700, around 37% below the current price.
Resistance is offered by a descending trend line that starts from the 26th of May high at $2.4820. This is now visible at $1.1440. This trend has proved resolute over the last 5 weeks. Furthermore, the Polygon price has reversed from the line in 3 out of the last 4 days.
Until MATIC manages to clear this trend, it remains in danger of falling below the support. Having said that, if MATIC escapes the downtrend, it puts the bulls back in charge and opens the door to $1.5000.
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