MATIC price resumes correction, as Polygon eyes acceptance below this key level

MATIC/USD is back in the red zone on Saturday, having witnessed up and down trading sessions so far this week.

Over the past few trading days, MATIC price has confined itself into a tight range between $1.55-$1.35, with bulls lacking the conviction to extend the rebound from weekly lows.

The MATIC price is reversing a part of Friday’s impressive recovery, now trading around $1.48, down 2.5% on a daily basis, tracking the negative sentiment across the crypto board.

Polygon remains on a corrective decline from two-month highs of $1.74, awaiting fresh impetus for the next leg lower.

MATIC/USD: Reclaims key 21-DMA support but for how long?

From a short-term technical perspective, the downside appears more compelling for MATIC price, in light of a rising wedge breakdown confirmed on the daily sticks on Thursday.

MATIC bears extended control below the rising trendline support at $1.4406, yielding a daily closing below the latter and the critical 21-Daily Moving Average (DMA), validating the downside breakout from the rising wedge pattern.

However, the bulls fought back control on Friday and rebounded firmly, recapturing both the 21-DMA as well as pattern support now resistance.

Heading into the weekly close, sellers have returned as they look to retest the 21-DMA level, now at $1.4215.

Acceptance below that level is critical to extending the bearish reversal from above the $1.50 barrier.

Sellers will then look out for the horizontal 100-DMA support at $1.2801, below which a drop towards the mildly bullish 100-DMA at $1.1579 will be on the cards.

MATIC/USD: Daily chart

Meanwhile, the 14-day Relative Strength Index (RSI) is edging lower but remains well above the central line, warranting caution for MATIC bears.

Should the bulls defy the persisting downbeat mood and regain control a test of the recent range highs near $1.55 will be inevitable.

Buyers will seek fresh entries above the last, calling for a fresh advance towards the August 24 high of $1.64. Ahead of that hurdle, the $1.60 round number could be probed.