In the midst of a bearish crypto market, the Polygon coin price has experienced a significant drop in just two weeks. From a peak of $0.995, the coin plunged 45.4% to reach the psychological support level between $0.509 and $0.5. Despite this decline, sellers seem to be facing difficulty breaking past the $0.5 mark, suggesting that buyers may regroup at this level. So, the question arises, is a recovery on the horizon?
Polygons’ recent integration with Kraken’s NFT platform has also generated some buzz. The daily chart for MATIC price reveals a lower price rejection candle at $0.52-0.5, indicating growing buying pressure. However, the price may face strong supply pressure at $0.698. In terms of trading volume, MATIC experienced an 8.67% gain with a daily volume of $364.5 million.
On June 10th, early trading saw MATIC’s price drop by 28%, testing the psychological support zone between $0.52 and $0.5. Investors were quick to react to the discounted price, and the intraday loss was reduced by half by the end of the day. The resulting lower tail rejection showcases $0.5 as a vital accumulation point, resilient to the current market sell-off. At press time, MATIC trades at $0.6 with an intraday loss of 1.3%.
There is a possibility that the altcoin will revisit the $0.5 mark to confirm its sustainability above this level. If this support is maintained, traders could reaccumulate and plan their move accordingly. However, it is essential to consider the recently breached supports of $0.687 and $0.745, which will now act as critical resistance levels. These levels will help determine if buyers are prepared for a recovery rally.
Given that MATIC’s price did not breach the $0.5 support mark even during the aggressive sell-off on June 10th, it is less likely that a further breakdown will occur unless other negative news impacts the market. The long-tail rejection signifies that buying pressure is growing at the $0.5 mark.
Technical indicators also provide some insights; the Bollinger Band shows that the coin price challenges the lower band of the BB indicator’s 3rd deviation, highlighting instability in the current downtrend. The daily Relative Strength Index (RSI) has plunged to an extremely low level (14%) in the oversold region, implying that further selling is less probable.
In conclusion, while the current market trends may appear unfavorable, buying pressure at the $0.5 support point suggests potential for a recovery. Traders should closely monitor resistance levels and do thorough market research before making any investment decisions in this volatile environment.
Source: Coingape
