V-top Reversal may Direct MATIC to $0.31 Support

Polygon (MATIC) price is losing for the sixth consecutive day, depreciating nearly 28%. The V-top reversal initiated from the $0.63 mark tends to breach immediate support of $0.45. Thus, the sustained selling should encourage a revisit to June low support of $0.312.

Key points 

• A Falling wedge pattern influences the MATIC price action
• The coin buyers lost the 20-day EMA support. 
• The intraday trading volume in MATIC is $846.2 Million, indicating a 3% loss.

Source- Tradingview

The MATIC/USDT pair showcases a sharp downfall over the past few months, resulting in an 89% fall within a falling wedge pattern. Moreover, The declining price action showcases constant rejections from the 20 (yellow) or 50-day (red) EMA. 

The recent bearish retracement comes after the failed rounding bottom pattern due to increased selling pressure close to the 50-day EMA. Furthermore, the declining trend cracks under the 20-day EMA, and $0.50 takes support at the $0.45 mark. 

However, the falling trend with increased selling pressure warns of an MATIC price drop to $0.3194, accounting for a deflation of 29%.

In the unlikely event of a bullish survival, the MATIC prices sustaining above $0.45, traders can expect a reversal to the psychological mark of $0.50. 

The wedge pattern is a bullish reversal pattern that should eventually trigger a trendline breakout for a potential recovery rally. 

Technical Indicators

DMI Indicator: increasing selling pressure influences a bearish crossover in the DI lines reclaiming a negative alignment. Moreover, the falling trend in the ADX line shows a slightly sideways trend showcasing a bearish attempt to regain trend momentum. 

Bollinger Band indicator: Along with $0.45 support, the recent downfall pokes the indicator’s midline, providing an extra edge to market sellers. Moreover, the MATIC price trading neutral line accentuates a negative bias among trades.

• Resistance levels- $0.58 and $0.63
• Support levels- $0.45 and $0.32