MATIC price looks ready for a 15% gain as Polygon tags a crucial support level

MATIC price has dropped 18% on January 5 and retested the 50-day Simple Moving Average (SMA) at $2.14.
Investors can expect a 15% advance if Polygon bounces off this support level.
A breakdown of the $2 demand barrier will invalidate the bullish thesis.

MATIC price seems to be running on fumes and is likely to see a relief bounce after the January 5 flash crash. The drop pushed Polygon to retest a crucial support level which could catalyze a minor uptrend.

MATIC price eyes a recovery rally

MATIC price dropped roughly 18% on January 5 and sliced through the 50-day SMA at $2.14. Although Polygon recovered above it, it is currently retesting this barrier in hopes of a relief bounce.

An increased buying pressure around $2.14 is likely, considering the overall bullish direction seen by MATIC price since July 19, 2021. Therefore, market participants can expect Polygon to rally 15% and retest the $2.47 resistance barrier.

This uptrend is highly situational and could see a further extension if the bid orders pile up. In such a case, MATIC price might revisit the $2.70 resistance barrier, bringing the entire journey to a 25% advance.

MATIC/USDT 1-day chart

On the other hand, if MATIC price produces a four-hour candlestick close below the 50-day SMA at $2.14, it will indicate an increased seller activity. This development will suggest that Polygon will revisit the $2 psychological level and, in some cases, the 100-day SMA at $1.86.

A breakdown of the $1.86 barrier will create a lower low, invalidating the bullish outlook. This move could trigger MATIC price to revisit the 200-day SMA at $1.53.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram