• MATIC price has triggered a symmetrical triangle pattern with a measured move of -74%.
  • Today’s -6% drop follows two straight inside days, preparing investors for a notable price expansion.
  • The June 22 low at $0.921 may halt a devastating Polygon decline.

MATIC price plotted a large symmetrical triangle pattern on the charts that is officially triggering today. With the break to the downside, Polygon is now vulnerable to a large decline that may test the 200-day simple moving average (SMA) if the broader cryptocurrency complex suffers a renewed surge in selling pressure.

MATIC price struggles as bears grab control of the trendy token

The -21% drop on June 21 through the ascending 2021 trend line was a huge warning sign to Polygon faithful and created a new range of resistance for MATIC price that combined the trend line with the 50-day SMA and the Anchored VWAP. The digital asset attempted to stabilize the sharp drop with a doji candlestick on June 22, but the resulting price action was characterized by indecision and accompanied by plunging volume numbers.

Today’s triggering of the symmetrical triangle pattern has exposed MATIC price to a significant decline. The measured move of the Polygon symmetrical triangle is approximately 74%, projecting a final low of $0.269. A collapse of that magnitude would defeat the 200-day SMA support at $0.624, the 38.2% Fibonacci retracement of the 2021 advance at $0.394 and the lows of the trading range defined during March-April at $0.287.

A daily close below the June 22 low of $0.921 would confirm the new leg lower from the symmetrical triangle pattern. The next credible level of support for Polygon is the May 23 low of $0.743 and then the 200-day SMA at $0.624, representing a 36% decline from the current MATIC price.

An alternative Polygon support level is the March 11 high of $0.544, marking a 44% decline from the current MATIC price. A continuation to the measured move target at $0.269 would be a surprise.

MATIC/USD daily chart

MATIC/USD daily chart

Today the psychologically important $1.00 may interrupt the developing Polygon sell-off, but it will take a close above $1.18 to initiate a reconsideration of the bearish forecast for MATIC price. 

For the moment, MATIC price is in the early stage of a new correction that may yield a tremendous loss for committed Polygon investors. However, the digital asset requires more confirmation before the weakness becomes a high probability short opportunity.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Analysts affirm AVAX price as extremely undervalued, expect Avalanche to decouple

Daily trade volume on Avalanche's top decentralized exchange, Trader Joe, is over two times that of competitors. Avalanche's multi-million dollar funding initiatives for attracting decentralized applications has triggered a spike in the token's on-chain activity. Gas consumption by layer-2 protocols is driving Ethereum transaction fees higher.

More Cryptocurrencies News

Dogecoin network update to boost mainstream adoption, trigger next DOGE rally

The Shiba-Inu-themed cryptocurrency’s utility is rising with news of AMC’s adoption of DOGE as a payment method. Traders are now anticipating a reduction in transaction fees and a recovery in DOGE. 

More Dogecoin News

Bitcoin price gears up for advance toward $51k, but BTC bears prepared to push back

Bitcoin price continues to record lower highs as a consolidation pattern has emerged. BTC has recovered nearly 9% since the September 24 low, which saw the leading cryptocurrency plunge 10% following China’s reiteration of a harsh crackdown on cryptocurrencies. 

More Bitcoin News

Cardano partners with Chainlink to drive smart contract development for DeFi applications

Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP