Polygon Recovery Faces Many Hurdles

MATIC price is recovering from the $0.95 support zone. Polygon might rise further but there is a major barrier forming near the $1.080 zone.

• MATIC price is attempting a recovery wave above the $1.00 resistance against the US dollar.
• The price is trading below $1.10 and the 100 simple moving average (4 hours).
• There was a break above a key bearish trend line with resistance near $0.975 on the 4-hour chart of the MATIC/USD pair (data source from Kraken).
• The pair could continue to rise if it clears the $1.008 resistance zone.

Polygon’s MATIC Price Faces Resistance

In the past few days, Polygon’s price saw a steady decline from well above $1.12. MATIC declined below the $1.00 support to move into a bearish zone.

A low is formed near $0.952 and the price is now attempting a recovery wave, similar to Bitcoin and Ethereum. The price was able to climb above $0.980. Besides, there was a break above a key bearish trend line with resistance near $0.975 on the 4-hour chart of the MATIC/USD pair.

The price is still trading below $1.10 and the 100 simple moving average (4 hours). It is now facing resistance near the $1.008 level or the 23.6% Fib retracement level of the downward move from the $1.191 swing high to the $0.952 low.

If there is an upside break above the $1.008 resistance level, the price could continue to recover. The next major resistance is near $1.08 or the 50% Fib retracement level of the downward move from the $1.191 swing high to the $0.952 low.

Source: MATICUSD on TradingView.com

A clear move above the $1.08 resistance could start a steady increase. In the stated case, the price could even attempt a move toward the $1.15 level or $1.20.

More Losses in MATIC?

If MATIC’s price fails to rise above the $1.008 resistance level, it could start a fresh decline. Immediate support on the downside is near the $0.98 level.

The main support is near the $0.95 level. A downside break below the $0.95 level could open the doors for a fresh decline toward $0.88. The next major support is near the $0.82 level.

Technical Indicators

4 hours MACD – The MACD for MATIC/USD is gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for MATIC/USD is now near the 50 level.

Major Support Levels – $0.98 and $0.95.

Major Resistance Levels – $1.008, $1.08, and $1.12.