- MATIC price has fallen off the cliff and crashed 17% this week, suggesting more could be on its way.
- A lower low below the May 9 swing low at $0.477 could see Polygon nosedive another 22%.
- A bullish engulfing candlestick validation above $0.686, although unlikely, will prevent the bearish thesis.
MATIC price has signaled a successful breach of its consolidation phase after the recent weekly candlestick close. A further crash could be in the works if bears push Polygon to produce a lower low.
MATIC price on edge
MATIC price set an all-time high at $2.69 in May 2021 and then set a new one at $2.92 in December 2021. Since then, the altcoin has been stuck in a range, extending from its all-time high and the $0.686 base.
However, in the third week of May, MATIC price breached the aforementioned barrier. Since then, two weekly candlesticks have elapsed which confirms a successful flip of the $0.686 support level into a resistance barrier.
Going forward, if MATIC price produces a lower low below the swing low at $0.477, it will create a new lower low and add to the bearish propaganda. In such a case, Polygon could crash another 22% to the weekly support level at $0.381. While there is a chance for a steeper correction, buyers are likely to step in here and cauterize the bleeding.
MATIC/USDT 1-week chart
On the other hand, if MATIC price produces a weekly bullish engulfing candlestick that closes above the $0.686 hurdle, the bearish thesis will face invalidation. This development will signal a resurgence of Polygon bulls.
In such a case, MATIC price needs to retest the same level to confirm a successful flip.
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.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?