Polygon (MATIC) Faces Key Resistance at $0.5720 Amid Recovery Attempt

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MATIC price has faced a significant drop of over 15%, testing crucial support at $0.5150. Despite a gradual recovery, resistance looms near $0.5650 and $0.5720, where bears might dominate.
The decline commenced from the $0.6285 resistance zone, sending MATIC below $0.570 and its 100-hour simple moving average.
A bearish trend line with resistance at $0.5720 is evident on the MATIC/USD hourly chart, indicating potential future resistance.

Polygon’s price sees a steep decline, plummeting over 15%, testing $0.5150 as support, with key resistance expected near $0.5650 and $0.5720 during recovery efforts.

Polygon Experiences Significant Price Drop

Polygon (MATIC) recently encountered strong resistance near the $0.6285 mark, leading to a steep decline. Following a high of $0.6286, MATIC started its downward trajectory, aligning with movements in Bitcoin and Ethereum.

Subsequently, the price fell sharply below $0.600 and $0.5720, eventually reaching a low of $0.5151. Although MATIC has begun a recovery effort, surpassing the $0.5350 resistance, it remains vulnerable to bearish activity. The token currently trades below $0.560 and under the 100-hour simple moving average.

Resistance and Potential Recovery

Initial resistance is observed around the $0.5550 zone, with significant resistance at $0.5720, coinciding with the 50% Fib retracement level of the downward move from $0.6286 to $0.5151. A critical trend line also forms resistance around this point. If MATIC can surpass the $0.5720 mark, it may target the next barrier at $0.5850, leading to a possible rally towards the $0.6285 or even $0.650 levels.

Possible Further Decline

Should MATIC fail to break above the $0.5720 resistance, another decline could be on the horizon. The initial support level lies near $0.5320, with stronger support at $0.5150. Breaching this support might trigger a deeper fall to around $0.50, with subsequent support near $0.4850.

Technical Analysis Indicators

Key technical indicators also suggest bearish pressure. The hourly MACD for MATIC/USD is gaining momentum in the bearish zone, and the RSI is currently below 30, indicating potential further downside. Important levels to watch include support at $0.5320 and $0.5150, and resistance at $0.5600, $0.5720, and $0.5850.

Conclusion

In summary, MATIC has undergone a significant price drop and currently faces strong resistance levels that must be overcome for a sustainable recovery. While recovery efforts are underway, traders should cautiously monitor key resistance and support levels to anticipate future movements. A break above $0.5720 could pave the way for gains, whereas failure to do so might lead to further declines. Keep an eye on critical technical indicators for further insights into market trends.