The MATIC price has fallen more than 10% after the SEC lawsuit against Kraken named MATIC as a security. Polygon is under pressure and may struggle to recover.
- MATIC price started a fresh decline after the $0.98 resistance against the US dollar.
- The price is trading below $0.80 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $0.788 on the 4-hour chart of the MATIC/USD pair (Kraken data source).
- The pair could continue to decline if it remains below the $0.800 resistance zone.
Polygon price is affected
After quite a rise, Polygon’s price struggled to break the USD 1.00 resistance. MATIC reached a high near $0.9829 and recently began a steady decline, underperforming Bitcoin and Ethereum.
There was a decline below the USD 0.920 and USD 0.850 support levels. The bears even pushed the price below the $0.820 support and the 100 simple moving average (4-hours). Finally, it tested the support at $0.728. A low has formed near USD 0728 and the price is now consolidating losses.
MATIC is trading below $0.80 and the 100 simple moving average (4 hours). There is also a major bearish trendline forming with resistance near $0.788 on the 4-hour chart of the MATIC/USD pair.
The immediate resistance is near the $0.785 level or the trendline. It is close to the 23.6% Fib retracement level of the recent decline from the $0.9829 swing high to the $0.7285 low. The first major resistance is around the $0.800 level. If there is an upside break above the USD 0.800 resistance level, the price could continue rising.
Source: MATICUSD on TradingView.com
The next major resistance is near $0.855 or the 50% Fib retracement level of the recent decline from the $0.9829 swing high to the $0.7285 low. A clear move above the USD 0.855 resistance could trigger a steady rise. In the said case, the price might even try to make a move towards the $0.920 level or $0.950.
Lose more in MATIC?
If MATIC price fails to rise above the USD 0.800 resistance level, it could continue to decline. The immediate downside support is near the $0.7285 level.
The main support is around the $0.700 level. A downside break below the USD 0.700 level could open the doors for another decline towards USD 0.650. The next major support is near the USD 0.618 level.
Technical indicators
4-hour MACD – The MACD for MATIC/USD is gaining momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for MATIC/USD is now below the 50 level.
Major support levels – USD 0.728 and USD 0.700.
Major resistance levels – $0.785, $0.800 and $0.855.