MATIC Price Prediction: Polygon kickstarts 40% sell-off

MATIC price could be starting a new downtrend after surging nearly 700% between February 8 and March 11.
The recent correction has pushed Polygon through the ascending parallel channel’s lower trend line.
The bearish outlook’s secondary confirmation will arrive after a decisive close below the 100 SMA at $0.30.

The MATIC price confirms one out of two confirmations that could invoke a steep correction.

MATIC price poised for a massive downswing

MATIC price has been on a constant upswing since February 8, which has resulted in an 8x return as of March 11. Since then, Polygon has lost steam, which has depreciated its market value by 36% at the time of writing.

The 7% price crash on March 22 has resulted in a breach of the ascending parallel channel. This setup forecasts a 40% drop determined by adding the channel’s height to the breakout point.

The resulting target puts the MATIC price at $0.20, which coincides with the 50% Fibonacci retracement level and the 200 Simple Moving Average (SMA) on the 6-hour chart.

The MATIC price has confirmed a bearish breakout since it already sliced through the ascending parallel channel’s lower boundary at $0.35.

The 100 six-hour SMA at $0.30 will serve as a secondary confirmation for Polygon’s descent.

MATIC/USDT 6-hour chart

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model adds credence to this pessimistic outlook. This metric shows little to no demand barriers but the presence of stiff resistance levels.

Hence, any bearish pressure could easily topple the demand barriers and lead to a sell-off.

MATIC IOMAP Chart

While the breakdown seems likely, a bounce from the 100 six-hour SMA could deter the downtrend. A sudden spike in buying pressure that leads to a decisive 6-hour candlestick close above $0.36 will confirm the start of a reversal.

However, only after creating a higher high above $0.43 will add any credibility to the uptrend. In this case, the MATIC price could surge 23% to $0.54.

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