Polygon (MATIC) price It has strongly crossed an important support area and turned it into a resistance barrier. While Polygon has traded around a previously frequented foothold, there is also the possibility that market makers will push the altcoin further down in hopes of raising liquidity.
MATIC price faces a decisive moment
MATIC The price has dropped 25% in the last three days and it’s likely to continue this decline. Perhaps the main reason for this decline is the recent break of the 200-day Simple Moving Average (SMA) below $1.62 after hovering above it for more than a year. Therefore, this turn is bearish in Polygon.
Polygon tried to break through this resistance, but failed and fell 6.6% today. However, unlike other altcoins, the downtrend of MATIC price may soon stop due to daily support levels at $1.44 and $1.22.
While this outlook may sound a bit ‘bullish’, it is uncertain as market makers may label MATIC price the weekly support level at $1.03 in hopes of rallying the below sell-stop liquidity.
Therefore, market participants should be prepared for a worst-case scenario with a 30% drop of $1 or less.
The most important data supporting this bearish view for MATIC price is IntoTheBlock’s Global Money In/Exit (GIOM) model. This on-chain index shows stable support levels for Polygon after $1.44 at $1.22 and $0.99, with roughly 67,320 addresses purchasing approximately 362 million MATIC tokens.
More depicting the brutal nature of the MATIC price is the exit of high net worth individuals or investors. The number of large transactions worth $100,000 or more fell from 875 to 243. This 72% drop indicates that these whales are uninterested in MATIC prices at current levels.
On the other hand, if MATIC price bounces off the $1.22 or $1.44 support level, it has a good chance to retest the $1.75 to $2.14 supply zone. A daily candlestick above $2.14 will invalidate the bearish argument. This development could also be the key to pushing the MATIC price to an all-time high of $2.92.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.