Polygon (MATIC) price risks breaking down from a short-term support line. This could catalyze a sell-off toward $0.75.
Polygon is a layer-2 scaling solution for the Ethereum blockchain. It effectively transforms the Ethereum network into an internet of blockchains and improves its capabilities relating to smart contracts and decentralized applications.
MATIC price has fallen since reaching an all-time high price of $2.92 in December 2021. The downward movement led to a low of $0.31 in June 2022, after which a substantial bounce followed, leading to a high of $1.31 in October. Still, Polygon price has been decreasing since.
The downward movement validated the long-term $1.31 resistance area, which is the 0.382 Fib retracement resistance level.
Despite the rejection, there is a strong bullish sign coming from the weekly RSI. The indicator broke out from its bearish divergence trendline and is now above 50. These are both considered signs of a bullish trend.
Still, the bullish reversal has yet to be confirmed since the MATIC price is trading below significant resistance.
Where Will Polygon (MATIC) Price Find Support?
The technical analysis from the daily time frame shows that the MATIC token has followed an ascending support line since Sept. 16. If the Polygon breaks down from the support line, it could then drop toward the $0.75 support area.
The daily RSI is trading right at 50, failing to provide a clear direction for the trend. As a result, it is not certain if MATIC price will bounce at the support line or break down toward $0.75.
Possible Short-Term Price Breakdown
Finally, the 4-hour chart shows that the Polygon price fell sharply over the past 24 hours and is now at risk of breaking down from an ascending support line.
Since support trendlines get weaker each time they are touched, it will likely break down.
As a result, the most likely price projection for the Polygon price is a drop toward the $0.75 region.
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Source: https://beincrypto.com/polygon-matic-price-correction-ahead/