• MATIC price has flipped the 200-day SMA at $1.62 into a resistance barrier.
  • The downswing could extend to $1 to collect the sell-side liquidity resting below it.
  • A daily candlestick close above $2.14 will invalidate the bearish thesis for Polygon.

MATIC price has sliced through a crucial support area, flipping it into a resistance barrier. As Polygon trades around a familiar foothold, there is a chance market makers might drag the altcoin lower in hopes of collecting liquidity.

MATIC price faces a decisive moment

MATIC price has dropped 25% over the past three days and is likely to continue this descent. Perhaps, the main reason for this bearishness is the recent breach below the 200-day Simple Moving Average (SMA) at $1.62 after hovering above it for more than a year. Hence, this flip puts a bearish spin on Polygon.

Although Polygon tried to reach above this barrier, it failed and has dropped 6.6% today. However, unlike other altcoins, the downtrend for MATIC price could be cut short due to the daily support levels at $1.44 and $1.22. 

While this outlook might seem slightly bullish, it is uncertain as market makers could knock MATIC price to tag the weekly support level at $1.03 in hopes of collecting the sell-stop liquidity resting below it.

Therefore, market participants should be prepared for a worst-case scenario, which is a 30% crash to $1 or lower.

MATIC/USDT 1-day chart

MATIC/USDT 1-day chart

Supporting this bearish outlook for MATIC price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index shows that the stable support levels for Polygon after $1.44 are present at $1.22 and $0.99, where roughly 67,320 addresses purchased nearly 362 million MATIC tokens. 

MATIC GIOM 

MATIC GIOM 

Further depicting the grim nature of MATIC price is the exodus of high net worth individuals or investors. The number of large transactions worth $100,000 or more has dropped from 875 to 243.  This 72% decline indicates that these whales are uninterested in MATIC prices at the current levels. 

MATIC large transactions

MATIC large transactions

On the other hand, if MATIC price bounces off the $1.22 or $1.44 support level, there is a good chance it will retest the $1.75 to $2.14 supply zone. A daily candlestick close above $2.14 will invalidate the bearish thesis. This development could be the key to pushing MATIC price to its all-time high at $2.92.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto bloodbath hasn’t even started yet

Crypto bloodbath hasn’t even started yet

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot after the massive slaughter that happened on the trading floor on Wall Street yesterday. Instead of cleaning up the pink sheets from the floor, the cleaning staff are probably busy sweeping up plenty of burned-out traders that got annihilated overnight as the Dow Jones printed its worst performance since June 2020.

More Bitcoin News

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin’s co-founder advises crypto investors to perform actual research and stay informed about their crypto investments. While the meme coin crumbles under pressure, analysts find a bullish pattern that could drive a rally in Dogecoin. 

More Dogecoin News

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

The collapse of Terra's LUNA price and algorithmic stablecoin TerraUSD (UST) has sparked outrage in the crypto community. Institutions and retail investors suffered significant losses when $40 billion in LUNA and UST’s market value was destroyed within a week. 

More Terra News

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

XRP price is in a rut as it followed Bitcoin and other altcoins into a crash after the LUNA-UST debacle. Ripple, on the other hand, is relentlessly fighting against the US Securities and Exchange Commission’s (SEC) allegations and to prove that XRP token is not a security.

More Ripple News

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin price shows interesting setups from multiple time frames that hint at a confluence. This convergence occurs for the short-term bullish outlook as well as the macro bearish scenario for BTC. 

Read full analysis

BTC

ETH

XRP