MATIC Price Decline Amidst SEC Lawsuit
The price of MATIC has experienced a significant drop of over 10% following the recent SEC lawsuit against Kraken, where MATIC was mentioned as a security. This development has put Polygon under pressure, raising concerns about its potential struggle for recovery.
Technical Analysis
MATIC’s price initiated a fresh decline from the $0.98 resistance against the US dollar. Currently, it is trading below $0.80 and the 100 simple moving average (4 hours). A key bearish trend line is forming with resistance near $0.788 on the 4-hour chart of the MATIC/USD pair, sourced from Kraken.
- The pair could continue to decline if it remains below the $0.800 resistance zone.
- After a decent increase, Polygon’s price struggled to clear the $1.00 resistance, forming a high near $0.9829.
- The bears pushed the price below key support levels, including $0.920, $0.850, and $0.820.
Currently, MATIC is trading below $0.80 and the 100 simple moving average (4 hours). Immediate resistance is near the $0.785 level or the trend line. The first major resistance is at $0.800, and a break above this level could signal a potential rise.
Possible Scenarios
If the price manages to break above $0.800:
- The next major resistance is near $0.855, followed by $0.920 or $0.950.
- A clear move above $0.855 could initiate a steady increase in price.
If the price fails to rise above $0.800:
- Immediate support on the downside is near the $0.7285 level.
- The main support is near $0.700, and a break below this level could lead to further decline toward $0.650.
Technical Indicators
- 4 hours MACD – The MACD for MATIC/USD is gaining momentum in the bearish zone.
- 4 hours RSI (Relative Strength Index) – The RSI for MATIC/USD is now below the 50 level.
Key Levels
- Major Support Levels – $0.728 and $0.700.
- Major Resistance Levels – $0.785, $0.800, and $0.855.
