Polygon bulls see MATIC rally cut short under Ukraine-Russia tensions

Polygon (MATIC) price action is getting barred from making any further highs as the monthly pivot at $1.87 proves to be too strong a match. As geopolitical worries are weighing in on global markets, any upside potential looks to be limited for now. Expect more negative headlines to come out, seeing a sharp decline in MATIC towards $1.57, losing 12%.

MATIC price action could shed 12% under geopolitical woes

MATIC bulls are not in a good trade since Wednesday as price action took a turn for the worse. Bears seized the opportunity to go in for a short entry at the monthly pivot. As global markets are on edge on the Ukrainian situation, there is no further relief foreseen for now as tensions rise in the region. Expect price action to stay muted to the upside until further notice, with the downside gapping open a little bit, as price action will look for solid ground to bounce off.

On the downside, MATIC price has a few exciting nominees as a support level to contain any significant moves to the downside. First up is the 200-day Simple Moving Average (SMA) at $1.70, but looking at previous price action, it actually got significantly more chopped up at the end of January, making it a support element that should slow down the fall. Lower down, look at $1.63 at the green ascending trend line below the pivotal historical element at $1.57, limiting any loss to 12%.

MATIC/USD daily chart

Another bounce at $1.75, as seen on Wednesday, could yet again be possible. It would only take one or two positive tweets or news elements to come out to completely turn sentiment back to positive and see bulls charging towards $1.87, breaking the monthly pivot and set to pop to $2.00. That would result in a 9% relief rally intraday, depending on the impact and importance of the headline.