Published 10 mins ago
From early May to June, the MATIC/USDT pair resonated in a narrow range stretched from $0.75 to the $0.51 mark. However, the sellers took advantage of the recent crypto crash and breached the bottom support level($0.51). The breakdown rally plummeted the altcoin to $0.388 and suggests further decline before hitting the next significant support of $0.3.
The 20-day EMA provides a dynamics resistance to MATIC price
The Bollinger band indicator a relief rally to the $0.5 flipped resistance
The intraday trading volume in MATIC is $2.27 Billion, indicating a 36.5% gain.
After the Polygon(MATIC) holders lost the monthly support of $1.3 on April 26th, the resulting downfall slumped the altcoin to the $0.5 psychological support, registering a 60% loss. The coin price consolidation above this new support for nearly a month period, responding to the widespread uncertainty in the crypto market.
However, last week the coin traders faced another wave of selling pressure which dumped the MATIC price below the $0.5 support on June 12th. The downfall represented by six consecutive red candles in the daily chart indicates a 42% loss.
Furthermore, if the selling pressure persists, the MATIC price would continue to slide lower as the next significant support level is at the March-April 2021 bottom support of $0.3
On a contrary note, an unexpected pullback may drive the coin price back to $0.5 flipped resistance, offering a retest entry opportunity for interested short-sellers.
Vortex indicator: Following a bearish crossover, the VI+ and VI- slopes display an instant spread accentuating the strong selling momentum. Therefore, with weakness reflected in indicators, the MATIC price is more likely to hit $0.3 support.
Bollinger band: The instant price drop has breached the lower band of the Bollinger band indicator, suggesting overextended selling from traders. Thus, the coin price would need a minor pullback to stabilize the ongoing downtrend.
Resistance levels- $0.56 and $0.75
Support levels- $0.3 and $0.187
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.