MATIC price plunges,at brink of adding another 10% loss to its feeble performance
|- Polygon price tanked over 6% to begin May.
- MATIC flirts with another leg lower and says goodbye to $1.
- Expect to see a steep decline that could bring MATIC below $0.90.
Polygon's (MATIC) price signaled a not-so-bright story with its opening price action on Monday in the ASIA PAC session. With the always-important 200-day Simple Moving Average (SMA) now being pulled into the bear camp as a cap, more downside looks granted. As MATIC has already plunged toward current support, more downside is more than likely as a few tail risks start to inflate again.
MATIC price cracks under pressure of tail risks
Polygon's price is setting the record straight for the month of May as it opens with a 6% decline on the first day of the month. The bad news does not stop there as clearly the risk in global markets weighs on MATIC with tail risks rising such as the possible default from U.S. on its debt ceiling and recession fears sparked again. The fact that Polygon price cracks that quickly under pressure means that more pain is to come, certainly should the US Dollar pick up steam and strengthen a bit.
MATIC is thus not in a good spot with the support at $0.96 already being broken on Monday. With possibly a large number of bulls stepping out of the way, it is just a matter of time before the sell-off accelerates and MATIC plunges toward $0.87. That means another 10% loss would be added to the already steep decline from Monday.
MATIC/USD 4H-chart
The fact that MATIC is still hanging on that pivotal level together with the Relative Strength Index (RSI) still near the oversold barrier might cause bears to lose interest in getting involved. The RSI, after all, shows little room for more downside. This opens up room for a bounce higher where the 200-day SMA at $1.025 will either be overthrown or deliver a firm rejection.
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.