MATIC price shatters significant support, hinting at a 25% nosedive
- MATIC price has sliced through an inclined trend line, signaling a bearish breakout.
- Investors can expect a retest of the $0.721 to $1.05 range’s lower limit.
- A daily candlestick close above $0.888 will invalidate the bearish thesis for Polygon holders.
MATIC price clearly shows bullish exhaustion and takeover from the holders booking profit. This development indicates that Polygon is likely to continue sliding lower if it does not overcome the selling pressure and reconquer old support levels.
MATIC price has one last chance
MATIC price created two higher highs and three higher lows between September 21 and October 5 as it rallied 25%. This swift run-up faced exhaustion before encountering the $0.721 to $1.05 range’s midpoint at $0.888.
The U-turn from this point has caused MATIC price to shed roughly 7% to where it currently trades - $0.799. This minor pullback, however, has sliced through the trend line connecting the three higher lows mentioned earlier, indicating a shift in the market structure favoring bears.
Going forward, market participants can expect MATIC price to undergo a small pullback to $0.808, followed by a continuation of the downtrend to the immediate support level at $0.721. A breakdown of this level will open the path for the sellers to revisit the $0.598 support level, which would constitute a 25% crash.
MATIC/USDT 1-day chart
Contrary to the bearish outlook, if the CPI numbers are lower than the previous month’s 8.3%, it would be a bullish sign for the stock markets and hence the crypto markets. In such a case, if buyers step in and push MATIC price to flip the $0.888 level into a support floor, it will invalidate the bearish outlook. This development could see Polygon attempt a rally to the range high at $1.05.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
