fxs_header_sponsor_anchor

MATIC price defends 200-DMA as Polygon bears keep $0.95 in sight

  • MATIC price is testing bullish commitments at the critical 200-DMA.
  • Polygon needs a sustained move above the 100-DMA to negate the bearish bias.
  • Bearish crossover and RSI suggest that the downside remains favored for MATIC.

MATIC price is consolidating the swift recovery seen on Friday following the crash to the pivot support just above the $1 mark.

Despite the volatile trading, MATIC price remains in a familiar between $1.30-$1 seen so far this week.

At the moment, MATIC bulls are looking to extend the previous recovery momentum, snapping the two-day downswing from three-week highs of $1.273.

It’s worth adding that Polygon is in a downside consolidative mode, awaiting a strong bearish catalyst to yield a sustained move below the $1 mark.

MATIC/USD: Rejection above 100-DMA recalls sellers

From a short-term technical perspective, the downside appears more compelling for MATIC price, especially after the bulls failed to resist above the 100-Daily Moving Average (DMA) at $1.21 over the last two trading sessions.

The bear cross, represented by the downward-pointing 21-DMA having pierced the slightly bullish 50-DMA from above on Thursday, adds credence to the additional weakness in Polygon while the 14-day Relative Strength Index (RSI) trades flat-lined below the 50.00 threshold.

That said, MATIC bears need a daily candlestick closing below the critical upward-sloping 200-DMA at $1.05 to resume the correction from three-month tops of $1.875.

Sellers will then target the horizontal (dashed) trendline support at $0.95 on intensifying downward pressure.

Further south, the $0.85-$0.80 demand area could come to the rescue of MATIC bulls.

MATIC/USD: Daily chart

On the flip side, a firm break above the 100-DMA is needed to negate the near-term bearish momentum.

The bearish 21-DMA at $1.32 could keep the further upside elusive in MATIC price. The next relevant upside barrier is envisioned at the ascending 50-DMA at $1.38.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.