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Polygon tumbles below $1 as bears refuse to give up

  • MATIC price is set for fresh declines as the $1 mark gives way.
  • Bears eye a decisive break below 23.6% Fibo level on the daily chart.
  • Bearish RSI backs the downside bias, as the crypto market paints red.

MATIC/USD has taken out Wednesday’s flash crash low, falling below the psychological $1 threshold amid relentless selling seen across the crypto board this Sunday.   

The MATIC price hit fresh weekly lows sub-$1, losing 16.50% on the day, as China’s crypto curbs continue to spook markets.

The ongoing three-day losing streak almost reverses the parabolic rise in Polygon from May 4 to May 19. The MATIC price recorded all-time highs of $2.8985 on Wednesday before crumbing 33% to finish the day at $1.6226.

MATIC/USD: Defends key support but for how long?

MATIC price accelerates declines this Sunday, having witnessed a daily closing below the critical short-term 21-simple moving average (SMA) at $1.2253.

The bears tested the key support at $0.9150, which is the 23.6% Fibonacci Retracement level of the meteoritic rise from April 23 to May 19.

If the sellers find a strong foothold below the latter, the upward-sloping 50-simple moving average (SMA) at $0.7832 could be put to test.

The next downside target awaits at the 100-SMA at $0.5194.

The relative strength index (RSI) pointing south, now at 46.22, strengthens the case for additional declines.

MATIC/USD: Daily chart

On the flip side, a bounce from the abovementioned Fibo support could bring the 21-SMA support now resistance back in play.

The 38.2% Fibonacci Retracement level of the same rally at $1.2915 will then get tested.

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