Crypto nugget: Polygon (MATIC) in a complex technical configuration

In this new cryptocurrency nugget on Wednesday, the pick of the day is MATIC, the cryptocurrency from Polygonal network, in the same way as AVAX for Avalanche or SOL for Solana. Although the network continues to develop as Layer 2 (an overlay of Ethereum), the asset has unfortunately failed to escape the downward spiral that is affecting all financial markets. Without further ado, let’s move on to TradingView to establish the most plausible scenarios for the next few weeks.

This MATIC analysis is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

A monthly downtrend?

MATIC course against the dollar on a monthly scale

After a long accumulation period between May 2019 and January 2021, the MATIC exploded last year recording a always high to $ 2.93 last December. However, this new high did not allow for a close above the May 2021 high. This showed a lack of strength from buyers. The latter have not been able to cope with the decline in which MATIC has been falling for several months now.

While these few lines are written, the MATIC is below the low point of summer 2021. If the token reaches a monthly close of less than $ 0.62, we will be fine: the monthly trend will be bearish. In this context, the objectives will be quite substantial and will correspond to a return of MATIC to the upper limit of the range between May 2019 and January 2021. This would correct the powerful price extension that took place in the first half of the year 2021.

MATIC in full withdrawal on a weekly scale?

Price of the MATIC cryptocurrency against the dollar on a weekly scale
MATIC rate against the dollar on a weekly basis

to theweekly scalethe trend is clearly bearish after the loss of 1 dollar. MATIC having lost the low point of summer 2021, struggled to win it back for several weeks. This demonstrates the buyers’ lack of vigor to retake a key level. At the moment, the price movement can be seen as a withdraw at the lowest point to confirm the bearish breakout.

In this context, the first price target will be the area $ 0.36 / 0.37 where MATIC has recently rebounded. If this level is set to fall, the next downside target is a $ 0.23. This technical zone had been resistance for a few days during the 2021 bullish rally. Finally, the last goal we can have in mind it would be a return of the price to the upper limit of the old range that we have identified on a monthly scale.

Other levels to monitor on MATIC via the daily scale?

Price of the MATIC cryptocurrency against the dollar on a daily basis
MATIC price against the dollar on a daily scale

to thedaily scale, we understand the monthly and weekly movements much better. You can see that the price is sideways for several weeks at the lowest point of the summer of 2021 before losing it, which caused MATIC to start a new bearish move. The current refusal is very clear and testifies to the superiority of the sellers. Since this peak is lower than the previous one, the daily trend is therefore bearish. However, with the calm prospects of the summer 2022 markets, we can keep a bullish rally in MATIC in the back of our mind.

Obviously this recovery would take place in parallel with a bitcoin that is temporarily resuming in force. So, if buyers can show the tip of their nose, we can have two levels in mind: $ 0.78 and $ 1.01. However, this is only a hypothesis since, for the moment, the trend is bearish on a monthly, weekly and daily basis. Therefore, we must give priority to the lower levels. In this picture, you may have two other levels in mind where the price could potentially bounce: $ 0.16 and $ 0.12.

Here is the situation the cryptocurrency MATIC. In a strong downward trend; Will buyers be able to restore significant momentum in the coming weeks? Until $ 0.62 is recaptured, the bullish targets will be much less relevant. So, keep in mind the area at $ 0.36. From the moment it is lost, it will be best to consider the bearish targets on the levels that have been cited throughout the analysis.

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