Polygon (MATIC) Breaches Long-term Support, Eyeing $1

  • Polygon price flipped 200-day Simple Moving Average around $1.62 into resistance barrier.
  • The declines might continue towards 41 to gather sell-side liquidity beneath the mark.
  • A daily candle close past $2.14 will nullify MATIC’s bearish target.

Polygon (MATIC) breached a vital support floor, turning the level into a resistance level. As the alternative token trades near a familiar footing, there is a high probability of market makers dragging MATIC lower, hoping to collect liquidity.

Polygon on a Decisive Moment

MATIC has suffered a 25% price drop within the last three days and might extend the downfall. Analysts attribute the token’s recent weakness to the latest break under 200-day SMA at $1.62. The breach came after the alt hovered beyond the mark for over one year. Therefore, the move translated to bearish dominance for MATIC.

Though MATIC attempted to break beyond the latest barrier, it could not and witnessed another 6.6% plunge today. Nevertheless, the alternative coin can halt its downtrend because of daily support zones at $1.44, then $1.22.

Though such a narrative might appear slightly bullish, it remains uncertain since market makers might know Polygon down. Tagging the weekly support floor around $1.03, hoping to collect sell-stop liquidity beneath the level. Market players need to prepare for the worst case, another 30% fall towards $1. Moreover, MATIC has a probability of falling under this mark.

IntoTheBlock’s GIOM model appears to support MATIC’s bearish outlook. The on-chain index suggests stable supports after $1.44 stood at $1.22, then $0.99, where nearly 67,320 addressed bought about 362 million Polygon tokens.

Also, the exodus by whale investors depicts MATIC’s grim nature. Transfers worth over $100,000 have declined to 243 from 875. The 72% drop shows net worth investors not interested in Polygon at its current price levels.

Meanwhile, a rebound off support at $1.22 or $1.44 might see MATIC retesting the supply zone, extending in the $1.75 – $2.14 range. A daily candle close past $2.14 will annul the bearish outlook. Such development may be vital in pushing MATIC’s price towards its ATH of $2.92. Nevertheless, MATIC’s path with less resistance is the downside one.

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Editorial credit: Dennis Diatel / shutterstock.com