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 has the potential to rebound higher in the near term, but it is most likely to struggle near $0.88 and $0.90 resistance levels. A break below $0.87 might pave the road for a drop towards $0.85 or even lower in the near future.
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.
MATIC/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.
MATIC/USD 4-hours price chart. Source: TradingViewIf 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.
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