Polygon (MATIC) Skid 5%, downside Risk Remains At 20%
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Polygon (MATIC) dropped more than 7% on Friday following the fall in the crypto market. At the time of writing, Polygon (MATIC) is trading at $1.84 with a 24-hour trading volume of $1,937,250368.
- Polygon price falls second straight day on Friday, diverging from the general market trend.
- Buyers could find attractive buy opportunities near lower levels.
- Skid lower after the news of a collaboration between global fashion brand Prada and Sports Company Adidas.
Bears sets eye on $1.60 on the daily chart
Technically speaking, the MATIC pair has broken a psychological level of $2.00000 and now hovering near the horizontal support line of $1.84.Polygon (MATIC) has risen more than 200% since September 21. Furthermore, the ascending trend line from the lows acts as a support for the buyers. The price has tested the bullish slop line four times and bounced back to make higher highs and higher lows. Now, the tested trend line has finally broken on January 20. This is giving scope for further downside in MATIC.
Looking at the momentum oscillator, the daily Relative Strength Index (RSI) has given the bearish crossover on January 12 where polygon formed a ‘ double top’ formation, which is a bearish reversal pattern.
The momentum is further confirmed by another oscillator, the MACD (Moving Average Convergence), which falls below the midline. All three factors strengthen the bearish outlook for the pair in the short term.
On the flip side, if the price holds near the horizontal support then it could see a technical bounce back to the recent highs of $2.0. An acceptance above the long term ascending line could meet the next target at $2.4
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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