MATIC price at vital support, will it hold?
- MATIC price is reacting favorably to the $0.381 support level after seven consecutive weekly down candlesticks.
- A recovery seems plausible but capped by the $0.477, $0.495 and $0.686 resistance barriers.
- A weekly candlestick close below $0.381 will create a lower low and continue the downtrend.
MATIC price is hovering around a stable support level that was pivotal in propelling it to new highs in mid-2021. As a result of this foothold combined with the pause from sellers, investors are expecting a relief rally for Polygon.
MATIC price shows potential
MATIC price crashed 73% since late April 2022 and set a swing low at $0.362. This downswing comprises seven consecutive weekly down candlesticks, indicating the state of the market and as an extension - altcoins.
While some cryptocurrencies have rallied 35% over the last 48 hours, Polygon seems to have recovered only 12% of its losses and is eying for more. However, this move will not be easy as MATIC price will face the $0.477 and $0.495 hurdles that are likely to absorb the buying pressure.
A flip of these two blockades into a support floor will allow MATIC price to make a run at the significant resistance barrier at $0.686. This level served as stable support all through 2021, hence will be a tough one to rack.
MATIC/USDT 1-week chart
While things are stabilizing around the $0.381 weekly support level, investors should note that a breakdown of the said barrier will invalidate the recovery thesis.
This development will produce a lower low and crash MATIC price by 38% to the next weekly foothold at $0.234. If buyers step in here, the uptrend or recovery rally could be given another go.
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.
