Briefly –
- MATIC seems to test bulls’ momentum around the crucial 200-DMA.
- Meanwhile, the alt requires a continuous surge past 100-DMA to deny the bearish outlook.
- Technicals show that MATIC’s road with the few obstacles is the downside one.
MATIC appears to consolidate its recent swift recovery recorded on Friday as it plunges towards the support around $1. Meanwhile, the alternative coin trades in a known range between $1.30 and $1 despite the volatility in the market.
For now, Polygon bulls attempt to continue their previous upside momentum, breaking the 2-day plummets that drag the asset from its 3-week peak of $1.273. The altcoin trades on a downswing consolidative attitude as it awaits massive bearish moves to initiate a continuous plummet under $1.
MATIC Primed for Losses
From a near-term technical outlook, MATIC has higher chances to plunge. Polygon bulls failing to maintain the asset beyond 100-daily Moving Average at $1.21 in the past two sessions. The rejection of over 100-dMA encouraged sellers.
The bearish cross, indicated by the downside-facing 21-day Moving Average piercing the 50-day MA on Thursday, supported Polygon weakness. At the same time, the Relative Strength Index (14) stays calm under the 50-level.
With that, Polygon bears should compel a daily candle close beneath the crucial upward 200-day Moving Average around $1.05. Only by that will they kick-start a retracement from 3-month peaks near $1.875.
After that, sellers will aim for the horizontal support, located near $0.95, if the plunging pressure intensifies. With increased southward actions, the demand area at $0.85 to $0.80 might step up to rescue Polygon bulls.
On the other hand, the altcoin needs a massive break past the 100-d Moving Average to annul the short-term bearish strength. The bearishness around 21-day MA at $1.32 might challenge MATIC’s uptrends. The next significant obstacle might emerge around the ascending 50-day MA near $1.38.
For now, the overall crypto market trades in a bloodbath. That came after China threatened more crackdown, stating that all transactions involving crypto are illegal. Such news dealt a blow on the market that was in recovery mode. Bitcoin lost almost 5% some two hours after the Chinese announcement. While writing this, BTC trades at $42,663.
