Polygon price analysis: MATIC braced for drop towards $1.245

TL;DR Breakdown

• Polygon price dropped more than 17 percent on the day to continue decline
• Price dipped as low as $1.35 with potential for further descent
• To recover further losses, MATIC must build towards $1.978

Polygon price analysis for the day shows price continuing to drop after recording a 17 percent recession during the day’s trade. Price dipped as low as $1.35 with trading volume also falling 22 percent. Since MATIC dropped below the heads and shoulders pattern on the 12-hour chart for January 22, it set a downward target of $1.245 which remains in touching distance at current price. Polygon also lost the first line of support at $1.44 and sits at the October 2 high of $1.352. Further losses may also incur taking price towards the 127.2 percent Fibonacci level of $0.978. To mitigate these losses, MATIC must rebound up to $1.978 to consolidate upward momentum.

The larger cryptocurrency market continued to decline, set in frame by Bitcoin’s 7 percent descent down to $33,500. Ethereum dropped 11 percent to sit just above $2,200 with Altcoins also dropping significantly. Cardano dropped almost 14 percent to move to $0.98. Terra dropped to $61.22 with a 10 percent decline. Dogecoin dropped 9 percent at $0.128, with Solana, Litecoin and Polkadot exhibiting similar drops.

Polygon price analysis 24-hour chart: Price primed to move further downward

The 24-hour candlestick chart for Polygon price analysis suggests price is expected to continue its descent downward over the next 24 hours. The relative strength index (RSI) outlines the dire state of the current trend with a market valuation at 27.54. Price also sits well below the crucial 25 and 50-day exponential moving averages (EMAs) at $1.764. The Moving Average Convergence Divergence (MACD) shows bearish lows, slipping well away from its neutral zone since the descent started for Polygon on January 18.

Lower levels in lieu of increasing sell orders may push Polygon price towards the 127.2 percent Fibonacci level at $0.978. However, if price can manoeuvre some consolidation and buying pressure increases, Polygon may retrace back towards $1.721.

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