Will MATIC Price Lose $1 Support Amid Market Correction?

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A V-top reversal from the $1.53 resistance plunged the MATIC price below a crucial support of $1.3. This bearish breakdown with a sufficient volume hike should accelerate the selling pressure and encourage the coin for further downfall. Thus, here are the support levels that could assist buyers in recuperating the bullish momentum.

Key Points

The V-top reversal signals a rapid downfall and strong commitment from sellers.
The breached 20-day EMA could offer an additional resistance level against the rising price.
The intraday trading volume in the MATIC is $538.5 Million, indicating a 27% gain.

Source- -Tradingview

The MATIC price witnessed a parabolic rally from January 1st to mid-February and reached a 10-month high of $1.57. Furthermore, the coin price formed a local top at the $1.53 mark and reverted lower for an occasional correction.

However, with the increasing bearishness in the crypto market, this retracement phase extended more than expected and recently breached crucial support of the $1.3 mark. Within a fortnight, the Polygon coin registered a 20.2% loss, and it now trades at the $1.22 mark.

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Thus, with sustained selling, the coin price should plunge another 4% and retest the combined support of 0.5 Fibonacci retracement level and $1.18. Thus support level is strong enough to stall the ongoing correction and bolster buyers to replenish bullish momentum.

However, in case of further downfall, the 0.618 FIB level at $1.05 could act as a second line of defense.

In case of a bullish reversal on either of the aforementioned supports, the MATIC buyers should wait for a breakout above $1.3 to get confirmation that the correction phase must have ended.