Polygon is in trouble, and yesterday's global rout in cryptocurrencies could not have come at a worse time. MATIC price was already shedding some profit after the rally up on September 4. A failed attempt to jump toward $2 made buyers quickly take profit and opened the door for sellers to start fading into a short.
Price action in Polygon Matic got squeezed against the green ascending trend line that acted as the backbone for the rally since July 20. The real break lower came after the rollout of Bitcoin BTC as the reserve currency for El Salvador. Polygon price shed almost 40% of its value in just one day, as cryptocurrencies rolled over across the board.
More headaches ahead for investors of Polygon Matic as today's price action got rejected around $1.40. That level falls in line with the orange long-term ascending trend line from March 22. With multiple retests on both upside and downsides, it has a proven track record.
The fact that buyers could not push Matic's price back above this orange ascending trend line spells more downside to come in Polygon MATIC price action. On the downside, the first level of interest appears at $1.20. Just above, around $1.25, the 55-day Simple Moving Average comes in. Although that 55-day SMA looks attractive, it needs to prove that it has or holds some importance for MATIC.
For the patient investors, an excellent opportunity lies at a price of $1, where Polygon has the S1 monthly support level falling in line with the 200-day SMA. These are two big forces. Especially the 200-day SMA, as that was the starting point for the price rally on July 20 and might reenact its former glory.
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