Polygon was on the path to recovery when price action rolled over this weekend. MATIC price bounced off a red descending trend line and has pushed Polygon to the downside quite quickly. Market turmoil this Monday is causing headwinds for all cryptocurrencies as investors flee to safe-havens.
MATIC price was on the right trajectory last week with a recovery to the upside. The monthly pivot at $1.34 never really held nicely on its supporting role, and sellers were each time able to get some price action below that pivot. Add to that element the red descending trend line from September 7, and bulls got trapped in a few false breakouts that each time got met with heavy selling action.
Market sentiment this Monday is not helping either. With index futures firmly in the red for the start of this week, cryptocurrencies are on the chopping block and are being kicked out of portfolios in what looks like a rotation toward more defensive assets.
Expect another push from sellers on $1.20. That level holds great importance, going back to July 4 and having had three solid September tests. It is a support that looks to withstand some attacks from sellers, but it will just be a matter of how long. Expect that when indices push lower, cryptocurrencies will follow suit, and $1.20 will break. The following support to look for is at $1.06. Price action got picked up there by buyers on September 7, and just below the 200-day Simple Moving Average (SMA) comes in, which will add additional support.
Should buyers still defend $1.20, expect a return to the red descending trend line and the pivot level at $1.34. These two elements will form a double resistance level and might limit any further upside for bulls in the short term.
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