Key Indicator Points $MATIC Price Correction to $0.6; Sell or Hold?

MATIC Price Analysis: Amidst the increasing volatility in the crypto market, the MATIC price has shown a significant correction in the last two weeks. From the recent swing of $0.891, the altcoin price has plunged 20% and reached the current price of $0.72. In the daily time frame chart, this pullback is part of the short-term recovery indicating a pivotal point for a higher rally or downtrend resumption.

Also Read: Polygon Introduces POL Token Upgrade, MATIC Price Jumps 5%

MATIC Price Daily Chart: 

• A potential breakdown below the rising trendline hints at a significant downfall
• Accumulation of several technical support at $0.71 creates a high demand zone.
• The intraday trading volume of the Polygon coin is $270.6 Million, showing a 32% gain.

Source- Tradingview

Over the past six weeks, the MATIC price has used an ascending trendline to maintain its current recovery rally. The buyers have been using this dynamic support as stepping stones and mark the July month high at $0.8916.

However, with an intraday loss of  4.4%, the polygon coin price shows a breakdown attempt from the aforementioned trendline. If the coin price gives a daily candle closing below the $0.71 support, the recovery phase would disrupt.

This breakdown will signal the resumption of the prior downtrend and plunge the 11th largest cryptocurrency to potential support of dollar $0.65, followed by $0.6 and $0.51.

Can Polygon Price Rise to $0.89?

By the end of the day, if the MATIC buyers stepped in to close the daily candle above the ascending trendline the ongoing recovery rally will remain intact. The resulting low price rejection candle would indicate the buyers’ still accumulating dips which increase the potential of prolonged recovery. This anticipated reversal would likely surpass the last showing high of $0.89.

• Relative strength index: Concerning the lower highs formed between the May and July month peak, the daily RSI slope shows a reverse divergence with higher high formation. This condition is often considered bearish as the buyer’s attempt, evident by the rising RSI slope fails to create a new high in asset price.
• Fibonacci retracement level: The potential breakdown below the $0.7 support will also lose 50% FIB level indicating weakness in bullish momentum