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Polygon price analysis: MATIC/USD set to dip below the 0.77 support

Polygon price analysis

Polygon price analysis suggests that the cryptocurrency has entered a bearish trend after losing 14 percent of its value overnight. The price is currently trading near the $0.87 level and is facing resistance at the $0.90 level. There is also a bearish trend line forming with resistance near the $0.88 level on the 4-hours chart of MATIC/USD.

The pair could correct higher in the short term, but it is likely to struggle near the $0.88 and $0.90 resistance levels. On the downside, a break below $0.87 could open the doors to move towards $0.85 or even lower in the near term.

Polygon (MATIC) is a layer 2 scaling solution for Ethereum that utilizes sidechains. It claims to offer near-instant transaction speeds and reduced transaction costs. The project was launched in 2017 and has since gained significant traction in the DeFi space.

The Polygon price is currently trading near the $0.87 level and is facing resistance at the $0.90 level. There is also a bearish trend line forming with resistance near the $0.88 level on the 4-hours chart of MATIC/USD.

The pair could correct higher in the short term, but it is likely to struggle near the $0.88 and $0.90 resistance levels. On the downside, a break below $0.87 could open the doors to move towards $0.85 or even lower in the near term.

MATIC/USD 1-day price chart: Bears take charge of the market

The 1-day price chart of MATIC suggests that the cryptocurrency has started a new bearish trend after it failed to hold the $1.00 support level. The price recently broke below a key bullish trend line with support near $0.96 on the same chart.

The price is now well below the $0.95 level and the 100 simple moving average (1-day). There is a key bearish trend line forming with resistance near $0.88 on the 4-hours chart of MATIC/USD.

The pair could struggle to recover in the near term unless it clears the $0.88 resistance level. The next major hurdle for the bulls is near the $0.95 level, above which the price is likely to start a strong upward move.

MATICUSD 1 day price chart 2022 05 11MATIC/USD 1-day price chart. Source: TradingView

The volatility of digital assets has increased significantly over the past few days as Bitcoin, Ethereum, and other major cryptocurrencies started a sharp decline. Polygon (MATIC) is also under pressure and it recently broke the key $1.00 support area.

The price even spiked below the $0.95 level before starting an upside correction. It recovered above the $0.88 level, but it struggled to gain traction above the $0.90 resistance. There is a key bearish trend line forming with resistance near $0.88 on the 4-hours chart of MATIC/USD.

Polygon price analysis: Recent price developments

The 4-hour price chart of MATIC suggests that the cryptocurrency has started afresh decline after it failed to hold the $0.95 support level. It even broke the key $0.88 support area and tested the $0.87 level.

MATICUSD 4 hour price chart 2022 05 11MATIC/USD 4-hours price chart. Source: TradingView

If there is a downside break below the $0.87 support area, the price could decline afresh. The next major support is near the $0.85 level, below which the bears are likely to aim a move towards the $0.80 level in the near term.

On the upside, an initial resistance is near the $0.88 level. The main resistance is now forming near the $0.90 level, above which the bulls are likely to aim a push towards $0.95.

Polygon price analysis conclusion

The Polygon price analysis remains supported near the $0.87 level, but a break below this support could start afresh decline towards $0.85 or even lower in the near term. The main resistance is now near the $0.90 level, and only a clear break above this level might open the doors for a strong rally towards $1.00.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
William Suberg

William Suberg

William Suberg is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. William is a lover of sports.

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