- MATIC’s price dropped more than 7% yesterday following overwhelming sell pressure.
- The altcoin’s price had briefly broken below the key support level at $1.0773 but was able to recover.
- Technical indicators on MATIC’s daily chart suggest that MATIC’s price will continue to drop.
The price of Polygon (MATIC) plummeted more than 7% yesterday – dropping from an opening price of $1.1718 to a low of $1.0550. Fortunately, MATIC’s price was able to recover somewhat yesterday to close the day’s trading session above the $1.0773 support level at $1.0843.
Daily chart for MATIC/USDT (Source: TradingView)
MATIC’s price had entered into a 4-day positive sequence last Thursday. During this sequence, the altcoin’s price climbed from a low of $1.0959 to a high of $1.1885 on Sunday. In the days that followed, MATIC’s price dropped sharply.
On Tuesday, the Layer-2 crypto saw its price drop to the key support level at $1.1517. Fortunately, the support level was able to hold – resulting in MATIC’s price closing at $1.1718. Yesterday, however, the support level succumbed to strong sell pressure, which caused MATIC’s price to drop below the next key support level at around $1.0773.
Fortunately, MATIC’s price was able to recover back above the support level before the end of yesterday’s trading session. MATIC’s price drop may not be over yet, however, as the 9-day EMA line is on the verge of crossing bearishly below the 20-day EMA line.
Should this cross happen, it will signal that MATIC’s price has entered into a short-term bearish cycle and may continue to drop in the next 24-48 hours. Traders and investors will want to keep an eye on the previously-mentioned support level at $1.0773 as well, as a daily close below this level will validate the bearish thesis.
At press time, MATIC is trading at $1.09 according to CoinMarketCap. Its price drop over the last 24 hours has flipped the altcoin’s weekly price performance into the red. As a result, the price of MATIC is currently down 1.94% over the last 7 days.
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