MATIC price looks ready for a 15% gain as Polygon tags a crucial support level

MATIC price seems to be running on fumes and is likely to see a relief bounce after the January 5 flash crash. The drop pushed Polygon to retest a crucial support level which could catalyze a minor uptrend.

MATIC price eyes a recovery rally

MATIC price dropped roughly 18% on January 5 and sliced through the 50-day SMA at $2.14. Although Polygon recovered above it, it is currently retesting this barrier in hopes of a relief bounce.

An increased buying pressure around $2.14 is likely, considering the overall bullish direction seen by MATIC price since July 19, 2021. Therefore, market participants can expect Polygon to rally 15% and retest the $2.47 resistance barrier.

This uptrend is highly situational and could see a further extension if the bid orders pile up. In such a case, MATIC price might revisit the $2.70 resistance barrier, bringing the entire journey to a 25% advance.

MATIC/USDT 1-day chart

On the other hand, if MATIC price produces a four-hour candlestick close below the 50-day SMA at $2.14, it will indicate an increased seller activity. This development will suggest that Polygon will revisit the $2 psychological level and, in some cases, the 100-day SMA at $1.86. 

A breakdown of the $1.86 barrier will create a lower low, invalidating the bullish outlook. This move could trigger MATIC price to revisit the 200-day SMA at $1.53.