MATIC Price Prediction: Polygon On The Verge Of A Major Collapse To $0.75

Last Updated July 23rd 2021
2 Min Read
  • MATIC price begins the journey downstream toward $0.75 primary support.
    • A descending triangle breakout reinforced the bearish grip on Polygon as the selloff intensifies.
    • The transaction history model reveals the lack of formidable support toward $0.75.

    Polygon keeps exploring the downside after losing ground above $1. Bulls in this market have suffered dearly since June highs of $2.4. As the breakdown continues, it is unlikely that the all-time high of $2.7 will be reached again soon.

    Meanwhile, the technical perspective has shifted to hunting for formidable support. On the other hand, as overhead pressure mounts, it is apparent that the breakdown is far from over and that investors should ensure they are buckled up for another rollercoaster spiral to $0.75.

    Polygon’s Downtrend Far From Over 

    Polygon’s four-hour chart illustrates a descending triangle pattern whose breakout has already been confirmed. This pattern is regarded bearish in technical analysis and often reinforces bearish calls.

    As MATIC price sliced through the horizontal line (x-axis) support, the odds for a significant downswing soared. An uptick in trading volume added gasoline to fire while more sellers joined the market.

    At the time of writing, Polygon is trading at $0.87 amid an intense bearish push. Note that descending triangle patterns have precise breakout targets equal to the distance between the widest points, as illustrated on the chart. Therefore, investors should acclimate to the possibility of a 25% dip to $0.75 before the next recovery attempt.

    MATIC/USD four-hour chart

     MATIC/USD 4-hour chart 071421

    The Moving Average Convergence Divergence (MACD) indicator emphasizes the continuation of the downtrend based on a recently presented bearish signal. As this technical indicator oscillates in Polygon’s trend, buy or sell signals flash.

    For example, the 12-day exponential moving average (EMA) crossing beneath the 26-day EMA compelled most traders to offload their coins, adding weight to the overhead pressure. Simultaneously, the MACD is back on a downward slope within the negative region, thus adding credibility to the bearish outlook. As long as the technical picture stays unchanged, investors should anticipate an elongated bearish action.

    The IOMAP on-chain metric by IntoTheBlock highlights the absence of immediate robust support. It infers that bears will continue to explore downstream levels, perhaps until Polygon hits the primary anchor between $0.77. The model shows that this support extends to $0.74. Here, bulls will plan the next recovery mission for gains above $1.

    Polygon IOMAP model

     MATIC/USD volume chart 071421

    On the upside, the absence of an immense seller concentrated zone shows that with enough push, MATIC may regain the lost momentum and make way toward $1. Hence, higher support will come in handy, ensuring stability and allowing buyers the opportunity to shoot their shot.