MATIC price has fallen more than 15% and tested the support at $0.5150. Polygon is slowly recovering, but the bears could be active around $0.5650 and $0.5720.
- MATIC price started a new decline from the resistance zone at $0.6285 against the US dollar.
- The price is trading below $0.570 and the 100-hour simple moving average.
- A major bearish trendline is forming with resistance at $0.5720 on the hourly chart of the MATIC/USD pair (Kraken data source).
- The pair could rally in the short term and test the $0.5720 resistance zone.
Polygon price is affected
After a decent rise, Polygon’s price faced stiff resistance near the $0.6285 zone. MATIC formed a short-term top at $0.6286 and recently started a new decline, just like Bitcoin and Ethereum.
There was a sharp move below the USD 0.600 and USD 0.5720 support levels. The price even fell below $0.5250 and tested $0.5150. A low was formed at $0.5151 and the price is now trying to recover. There was a move above the USD 0.5350 resistance level.
The price climbed above the 23.6% Fib retracement level of the downward move from the $0.6286 swing high to the $0.5151 low. MATIC is trading below $0.560 and the 100 simple moving average (4 hours).
The immediate resistance is near the $0.5550 zone. The first major resistance is near the $0.5720 level or the 50% Fib retracement level of the downward move from the $0.6286 swing high to the $0.5151 low. There is also a major bearish trendline forming with resistance at $0.5720 on the hourly chart of the MATIC/USD pair.
If there is an upside break above the $0.5720 resistance level, the price could continue rising. The next major resistance is near $0.5850. A clear move above the resistance at $0.5850 could trigger a steady rise. In the mentioned case, the price might even try to make a move towards the USD 0.6285 or USD 0.650 level.
Another drop in MATIC?
If MATIC price fails to rise above the USD 0.5720 resistance level, it could trigger a fresh decline. The immediate downside support is near the $0.5320 level.
The main support is near the $0.5150 level. A downward break below the USD 0.5150 level could open the doors for another decline towards USD 0.50. The next major support is near the $0.4850 level.
Technical indicators
Hourly MACD – The MACD for MATIC/USD is gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for MATIC/USD is now below the 30 level.
Major support levels – $0.5320 and $0.5150.
Major resistance levels – $0.5600, $0.5720 and $0.5850.