MATIC Could Crash 20% To Revisit The $0.381 Support Level
2022.07.08 15:45
MATIC Could Crash 20% To Revisit The $0.381 Support Level
- MATIC recently saw a 33% retracement after a 100% upswing that was triggered on June 18.
- Market makers have been successful in pushing the price of MATIC up by 43% in an attempt to collect the buy-stop liquidity just above the $0.626 level.
- The upside for MATIC is capped around the $0.626 level.
Polygon (MATIC) has been recovering extremely well over the last three weeks which suggests that the crypto has some bullish momentum. On the other hand, it is still important to acknowledge the fact that things could turn sour again for MATIC with liquidity sweeps followed by a reversal.
MATIC recently saw a 33% retracement after a 100% upswing that was triggered on June 18. The pullback happened after MATIC formed three equal highs at $0.626. The correction then stabilized at the $0.477 support level.
Currently, market makers have been successful in pushing the price of MATIC up by 43% in an attempt to collect the buy-stop liquidity just above the $0.626 level, but this run-up is experiencing some resistance at the $0.595 level.
While market makers have been doing a good job at pushing the MATIC price higher, a reversal could still be in the cards. The equal highs that formed around $0.595 can be seen as a double top formation that could signal the end of MATIC’s uptrend.
The upside for MATIC is capped around the $0.626 level either way. The only way for MATIC to retest the $0.686 resistance barrier is a four-hour candlestick close that flips the hurdle into a support level.
MATIC / USDT 4-hour chart (Source: FXStreet)
On the other hand, if MATIC were to close a four-hour candlestick below the $0.477 support level, it could flip the resistance barrier and invalidate the bullish thesis.
If this were the case, MATIC could crash 20% to revisit the weekly support level at $0.381.
According to CoinMarketCap, MATIC is trading at $0.5775 after an 11.35% increase in price over the last 24 hours.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies
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