MATIC Price Heading to $0.5 Support; Buy this Dip?

Amid the recent correction phase in the crypto market, the MATIC price witnessed a V-top reversal from the $0.8819 resistance. This reversal evaporated the entire recovery from the buyers’ build during the June to mid-July recovery, heading towards the last swing low of $0.508. Will the ongoing downfall mark a new 2023 low for polygon coins?

Also Read: Reddit NFT Sale Crosses $40M; Polygon Founder Reveals What’s Next

MATIC Price Daily Chart

• The polygon coin may witness strong accumulation at $0.5 psychological support
• A resistance trendline offers dynamic resistance to buyers
• The intraday trading volume of the MATIC coin is $400 Million, showing a 9.8% gain.

Source- Tradingview

In the last five weeks, the MATIC price dropped from $0.8819 to the current price of $0.5722 registering around a 35% loss of market value. This downfall has brought the coin price to the last lower low which is $0.508, indicating the sellers may reattempt to further extend the downward trend.

The recent sell-off in the crypto market increased the bearish momentum and gave an additional push for a breakdown below $0.0508. If the daily candle is below the aforementioned support, the MATIC price may drop another 38% to reach the 18th June low of $0.316.

In addition, a downsloping trendline of the daily chart shows the direction of the current correction phase. Until this trendline is intact, the polygon coin may face aggressive selling. 

Can Polygon Coin Recovery Back to $0.89?

Despite the massive sell-off witnessed during the early hours of August 15th, the buyers stepped in by day’s end and pushed the prices higher with long-tail rejection. This lower tail reflects the accumulation of buyers at the market dip, projecting the potential of a bullish reversal. In the coming days, if the price action shows a reversal from $0.56 or $0.5, the buyers could wait for a breakout above the overhead trendline to gain additional confirmation. This potential reversal may push the Polygon coming back to $0.891

• Exponential Moving Average: The dynamic resistance of 20-day EMA assists sellers to maintain aggressive downfall.
• Relative Strength Index: With concern to the two swings to $0.56 in the last two months, the daily RSI slope shows an evident rise inundating the increasing accumulation from buyers.