- MATIC price has triggered a symmetrical triangle pattern with a measured move of -74%.
- Today’s -6% drop follows two straight inside days, preparing investors for a notable price expansion.
- The June 22 low at $0.921 may halt a devastating Polygon decline.
MATIC price plotted a large symmetrical triangle pattern on the charts that is officially triggering today. With the break to the downside, Polygon is now vulnerable to a large decline that may test the 200-day simple moving average (SMA) if the broader cryptocurrency complex suffers a renewed surge in selling pressure.
MATIC price struggles as bears grab control of the trendy token
The -21% drop on June 21 through the ascending 2021 trend line was a huge warning sign to Polygon faithful and created a new range of resistance for MATIC price that combined the trend line with the 50-day SMA and the Anchored VWAP. The digital asset attempted to stabilize the sharp drop with a doji candlestick on June 22, but the resulting price action was characterized by indecision and accompanied by plunging volume numbers.
Today’s triggering of the symmetrical triangle pattern has exposed MATIC price to a significant decline. The measured move of the Polygon symmetrical triangle is approximately 74%, projecting a final low of $0.269. A collapse of that magnitude would defeat the 200-day SMA support at $0.624, the 38.2% Fibonacci retracement of the 2021 advance at $0.394 and the lows of the trading range defined during March-April at $0.287.
A daily close below the June 22 low of $0.921 would confirm the new leg lower from the symmetrical triangle pattern. The next credible level of support for Polygon is the May 23 low of $0.743 and then the 200-day SMA at $0.624, representing a 36% decline from the current MATIC price.
An alternative Polygon support level is the March 11 high of $0.544, marking a 44% decline from the current MATIC price. A continuation to the measured move target at $0.269 would be a surprise.
MATIC/USD daily chart
Today the psychologically important $1.00 may interrupt the developing Polygon sell-off, but it will take a close above $1.18 to initiate a reconsideration of the bearish forecast for MATIC price.
For the moment, MATIC price is in the early stage of a new correction that may yield a tremendous loss for committed Polygon investors. However, the digital asset requires more confirmation before the weakness becomes a high probability short opportunity.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.