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Will Matic price fall to $0.33

  • MATIC price has printed consecutive bearish engulfing candles.
  • Polygon price volume is still low.
  • Invalidation of the bearish downtrend is a breach of $0.94.

MATIC price is experiencing drastic bearish price action that warrants the idea of much lower targets.

MATIC price sell-off looks severe

MATIC price has breached key support zones at $0.80 and $0.70. The Polygon network token is floating on thin ice, and the next substantial support zone lies more than 50% below at around $0.33. The Relative Strength Index is failing to find support on multiple time frames, with only the two-week and monthly charts remaining within buyers' territory. 

MATIC price volume profile does not necessarily imply such a strong bearish impulse will occur. Although $0.33 is a likely target, the strength of the bears will truly surprise analysts and investors alike if the target is breached. An alternative scenario could be a range-bound consolidation in the days to come before a countertrend rally occurs. Because the slope of the decline is so steep, it is not advised to be an early buyer of the MATIC price just yet.

TM/MATIC/5/11/22

MATIC/USDT 2-Day Chart

A safer scenario is to let the digital asset articulate its directional narrative. The ideal bullish trade setup will occur once $0.94 is breached. If this occurs, the MATIC price will continue to rise, and then a pullback will occur. If the technicals present a buying opportunity, the bulls could then target $1.40 after the pullback occurs, which would result in a 115% increase from the current MATIC price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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