- Polygon price analysis is bearish today.
- MATIC/USD is trading at $1.4.
- Further upside rejected.
Today’s selling is an example of a bearish market position being reinforced after the price rose briefly to $1.48 earlier today. The MATIC/USD price analysis recorded a loss as a result of the short trade, prompting us to anticipate that MATIC/USD will retreat from some of its advances and seek a higher low in order to confirm a short-term bullish trend.
The break of the neckline was not supported by volume, which currently seems relatively low. If MATIC/USD were to experience a decline from here, it would test the descending channel resistance around $1.42 as a first measure.
If this level is broken, we could see further declines towards the $1.37 support before some kind of consolidation happens and/or a corrective rally to $1.48 occurs. The latter has been strongly rejected after an initial spike above that level, leading us to believe that MATIC/USD will follow through on our bearish market expectations for now.
MATIC/USD 4-hour chart: MATIC set to retrace?
After a spike higher, the Polygon price has suffered significant rejection in the 4-hour chart, suggesting an impending retracement.
Following a month-long consolidation above $1.05 at the end of September, there was a substantial advance on October 1st.
Over the next few days, a resistance level of $1.35 was established. On Tuesday, a swing low of $1.20 was set, which marked the beginning of this week’s retracement.
Polygon’s price has been consolidating in a tighter range since then, with no sign of a downturn. The consolidation phase came to an end when Polygon’s value hit $1.32, after which the price rose rapidly to hit $1.46 just now. As selling pressure built up again, MATIC/USD topped out at $1.48 and is currently under pressure, although speculative trading has been particularly heavy on October 9th.
The increase in volume at the time of this morning’s spike could be interpreted as a sign that selling momentum is increasing. For an upswing to happen here, today’s advance will need to be accompanied by substantially more buyers than sellers.
If the selling continues over the next few hours, MATIC/USD will likely test $1.42 as the first measure of support before it corrects higher. On the other hand, if selling is absorbed and the price advances again, this would indicate that today’s spike was not yet an example of bearish momentum.
If the level at $1.35 is breached, it will become increasingly likely that MATIC/USD will head for lower lows in the near future – possibly even back to $1.20 if this week’s retracement continues until then.
Polygon Price Analysis: Conclusion
The Polygon chart for today is bearish, as a rapid increase was followed by a lot of selling pressure in the previous hours. As a result, we anticipate MATIC/USD to retreat over the next 24 hours and establish a higher low.
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