Polygon price analysis: MATIC plunges towards $2 key support

TL;DR Breakdown

• Polygon price lowered more than 5 percent on the day to move as low as $2.09
• Price dropped significantly after reaching $2.4 resistance yesterday to form bearish outlook
• With current decline MATIC remains likely to go into correction and build from $1.8 support

Polygon price analysis for the day shows the token dropping over 5 percent to move from $2.4 resistance towards $2 support. The significant decline came after a period of consolidation around the SMA at $2.3. Trading volume also fell over the past 24 hours with price correcting towards the $2 support. In current view, MATIC appears to be primed for a lengthy spell towards correction and consolidation and could go down towards the lower support floor at $1.8.

The larger cryptocurrency market continued to recede over the past 24 hours, with Bitcoin and Ethereum failing to break past their levels at $42,300 and $3,200, respectively. Among Altcoins, Cardano dipped more than 2 percent to sit at $1.48. Ripple dropped to $0.75 with Litecoin dipping 4 percent down to $142.26. Terra gained 4 percent to move up to $80.77 with Solana also rising 1 percent to $140.78.

MATIC/USD 24-hour chart: Inverted Hammer pattern signifies dip in price

On the 24-hour candlestick chart for Polygon price analysis, price can be seen facing a stern decline leading towards $2 support floor, indicated by an inverted hammer pattern. Price dipped below the crucial 25 and 50-day exponential moving averages (EMAs) at $2.215 over 24 hours and remains in line for further decline. The relative strength index (RSI) value of 42.70 indicates low market value, also supported by a 2 percent dip in trading volume. The moving average convergence divergence (MACD) curve also shows bearish signs, after turning downwards since price hit $2.5 on January 3.

MATIC/USD 4-hour chart: Low RSI hints at further price decline

The 4-hour chart for the MATIC/USD trade pair shows price declining steeply over the previous trading sessions towards the $2 support zone. While MATIC is expected to make a slight upturn from the support point, it remains also in place to retrace towards $1.8. The RSI value suggests very low market valuation at 30.92, while price also sits significantly away from crucial EMAs. Over the next short term trading sessions, Polygon is expected to hover just above the $2 mark. A breakout could be in line if the token can successfully consolidate at this point.

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