MATIC Price Dips as Bears Take Control: Potential Support at $0.98

Key Insights:

• Bearish momentum dominates as MATIC falls below support levels.
• High volatility and uncertainty in the MATIC market lead to significant price movements.
• RSI suggests oversold MATIC token may offer a potential buying opportunity.

 

Despite a bullish start, Polygon’s (MATIC) market has experienced a pullback as bulls failed to break through the barrier level at the intra-day high of $1.11. Following this failure, bears gained market control, driving it to a 24-hour low of $1.03, where support was established.

If the negative momentum continues and the support level at $1.03 is breached, the following support levels may be at $0.98 and $0.92, respectively, as suggested by the Fibonacci retracement levels. 

In accordance with past price action and technical analysis, if the bulls gain market dominance and push the price over the resistance level at $1.12, the next probable resistance levels might be at $1.20 and $1.30, respectively.

The market capitalization fell by 5.66% to $9,376,060,141. Still, the 24-hour trading volume increased by 41.17% to $391,113,402, indicating high volatility and uncertainty in the market, which might lead to significant price movements in the short term.

MATIC/USD  Technical Analysis

On the MATICUSD price chart, the MACD blue line has migrated into the negative zone with a reading of -0.018, indicating that the bearish momentum is rising. To capitalize on the downward trend, traders may consider selling holdings or executing a short-selling strategy.

When the histogram moves in the negative zone, it signals bearish solid momentum. It may imply more significant downside potential, making it a desirable scenario for short-term traders trying to profit from market drops.

Because the Money Flow Index has fallen to 29.04, bears in the MATIC market may continue to dominate in the immediate term, and traders may consider selling existing positions or waiting for a potential comeback before opening fresh long positions.

The rate of change motion is in the negative region, with a value of -5.42, indicating that the bears are now in charge of the MATIC market, and the price is declining. This movement indicates that selling pressure is prevailing in the market, and traders will most likely continue to liquidate their holdings in expectation of future price drops.

MATIC/USD Technical Analysis

With a value of 38.62 on the MATIC price chart, the Relative Strength Index (RSI) move is below its signal, indicating that the MATIC token may be oversold and a possible buying opportunity may exist. This RSI level and movement north signal that a “bullish divergence” is building, indicating that selling pressure may be easing and a trend reversal may be on the way.

When the Technical Ratings indicator displays a strong sell signal, the bearish bias should still be considered, and traders should wait for confirmation before taking any long positions.

The Vortex Indicator shows a bearish crossing as the signal line rises above the VI, with the former at 0.8399 and the latter at 1.1461. This movement indicates that the negative trend in the MATIC market is strengthening, and traders may want to consider taking short positions or abandoning long ones to minimize future losses.

 

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