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The MATIC coin price shows a tremendous rise in selling pressure that may break below the confluence area to give a 30% downfall.
The MATIC token is the native currency of Polygon and helps in securing the system and enabling governance. Polygon is a layer 2 protocol that performs as a sidechain to the Ethereum blockchain completing a full-fledged multi-chain system.
Let us move ahead to read about the Polygon technical analysis.
Past Performance of MATIC
The MATIC coin price fell more than 25% in the past two weeks after facing rejection near $3. Furthermore, the coin price breaks below $2.15 and the support trendline of the expanding channel in the daily chart. If the price closes below this confluence, then a downfall of 30% is possible.
MATIC/USD Daily Chart
MATIC Technical Analysis
MATIC coin price hinges close to the support confluence area, and the fallout below this can prove fatal. However, the higher price rejection seen in the previous daily candles indicates an increase in selling pressure.
The RSI indicator at 42% crosses below the 14-day SMA line and the 50% mark in the daily chart. Therefore, the indicator gives a sell signal for MATIC coin as the slope dives deeper into the nearly oversold zone.
The MACD indicator reflects the falling MACD and signal lines approach the zero line in the daily chart. Moreover, the rising bearish trend of histograms indicates a boom in selling pressure.
Upcoming Trend
If the MATIC prices fall below the support level at $2, then a fatal downtrend can result in a major fall. Traders can find influential support at horizontal levels of $1.70 and $1.45 playing a key role in providing demand.
In a nutshell, the coin price shows higher price rejection as it approaches $2, which increases the chances of price breaking below the confluence. Therefore, traders need to be patient and observe the price action before taking a short decision.