Matic Price Corrects by 45% in Six Weeks: Is Recovery on the Horizon?
The price of Polygon’s native token, $MATIC, has experienced a significant correction, dropping by 45% over the past six weeks. This downturn aligns with the broader market trend, where bearish sentiments have taken hold.
Market Downturn and Rejection at Resistance Trendline
The recent price drop for $MATIC was triggered by a broader market downturn and a rejection from a key resistance trendline. The rejection at this trendline suggests the potential for a retest of lower support levels, indicating a continuation of the current sideways trend.
Falling Wedge Pattern and Symmetrical Triangle
Over the past seven weeks, Polygon has been on a consistent downtrend, primarily due to a falling wedge pattern. However, a broader analysis shows that the $MATIC price is still hovering above the support trendline of a symmetrical triangle pattern that has been in place for two years.
Potential Trend Reversal: A Doji Candle at $0.70
The persistent bearish trend seems to have paused, with a Doji candle appearing around the $0.70 mark, potentially signaling a halt in the downtrend. This development could be the start of a positive turnaround on the weekly chart, possibly forming a morning star pattern, indicating a bullish reversal.
Price Targets and Key Levels
If the current resistance is broken, there’s potential for $MATIC to climb towards a target of $0.95, representing the 0.5 Fibonacci retracement level. However, if resistance holds and $MATIC fails to break through, it could drop below the April 13 low, heading towards the support zone around $0.40.
Key Resistance and Support Levels
- Resistance Levels: $0.7500 – $0.9000
- Support Levels: $0.6000 – $0.5000
The following days will be crucial in determining the direction of the Polygon price. Traders and investors should monitor these key levels and candle formations for insights into the next possible moves for $MATIC.
