Cryptocurrency

Polygon [MATIC] embarks on a downward move, watch out for this support level

Disclaimer: The info offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.

Polygon [MATIC] witnessed a spike in improvement exercise in line with Santiment, however social engagement has seen a dip over the previous month. On the charts, MATIC noticed a sharp rejection on the $0.94 resistance mark.

At the time of writing, the momentum was in favor of the sellers. Yet, this may shortly change if Bitcoin [BTC] bulls hauled BTC previous $19.4k. Can the native token of Polygon flip the $0.77 level again to support, or wouldn’t it see additional losses to maneuver towards $0.67?

MATIC- 4-Hour Chart

Source: MATIC/USDT on TradingView

The four-hour chart had a key level of support at $0.77, marked in dashed white. In August, this space noticed a number of exams by the value. Each time, the consumers have been capable of rebuff the bears.

Towards the tip of August, the bulls have been capable of provoke a robust rally to $0.94. This level of resistance had been a vital resistance zone in early August as effectively, earlier than the bulls have been capable of power a break above.

At the time of writing, the $0.77 support zone had been retested as resistance. This pointed towards exhaustion on the consumers’ aspect in current days. The Relative Strength Index (RSI) on the H4 chart was additionally beneath the 40 mark to point out robust downward momentum.

MATIC- 1-Hour Chart

Polygon [MATIC] sees downward trend strengthen on shorter timeframes

Source: MATIC/USDT on TradingView

The flip of the numerous zone of liquidity at $0.77 from support to resistance previously few days meant that decrease timeframe bias must lean bearish as effectively. This meant any bounces on the value can be for promoting.

The previous two days of buying and selling confirmed stiff promoting strain within the $0.75-$0.77 area. At the identical time, a level of support at $0.72 was additionally recognized. This level had final been examined by MATIC in late July.

Therefore, consistent with the H4 bearish bias, decrease timeframe merchants may also look to journey the downward momentum to $0.722 and $0.677, one other level of support from mid-July. The bulls would want to flip the $0.77 level to support to invalidate the bearish bias.

Polygon [MATIC] sees downward trend strengthen on shorter timeframes

Source: MATIC/USDT on TradingView

The hourly RSI was additionally beneath impartial 50 however not beneath 40, therefore momentum was solely barely in favor of the sellers on the time of writing. The Accumulation/Distribution (A/D) line really noticed a surge over the previous couple of days following the bounce to retest the $0.77 level as resistance.

The Directional Movement Index (DMI) confirmed the Average Directional Index (ADX) (yellow) and -DI (purple) to maneuver above the 20 mark. The inference was that a robust bearish pattern was in progress in line with the DMI.

Conclusion

The subsequent day or two may see Bitcoin get well if the FOMC publicizes an already anticipated charge hike. In such a state of affairs, the bearish bias may shortly be flipped to bullish. Until MATIC can climb again above $0.77, nonetheless, merchants can look for promoting alternatives.

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