MATIC’s Descending Triangle and Key Support
Ali identifies that MATIC is forming a descending triangle, a bearish pattern that suggests further downside if the $0.34 support level is breached. This pattern typically indicates a continuation of the downtrend if the support fails to hold.
However, if MATIC maintains its position above this support, there is potential for a price rebound. Ali suggests that a successful hold could lead to a potential increase in price towards $0.94.
- Descending Triangle Pattern: Signaling a possible continuation of the bearish trend if support breaks.
- Support Level at $0.34: A key price floor where buying interest may prevent further decline.
- Resistance Level at $0.47: Corresponds with the 0.786 Fibonacci retracement level, serving as an initial resistance zone.
What Happens if $0.34 Breaks?
Ali warns that if the $0.34 support level fails, MATIC could face a significant price correction, potentially dropping to $0.19. This level aligns with the 1.618 Fibonacci extension, indicating a deeper retracement if the support is breached.
Additionally, a downward trendline further complicates the situation by serving as an additional resistance point. Even if MATIC rebounds from the $0.34 support, it will need to overcome this trendline and the Fibonacci levels before any bullish outlook can be confirmed.
Watch the $0.34 Level
In summary, the $0.34 support level is crucial for Polygon (MATIC) traders. If it holds, there is a possibility of a rebound towards $0.94. Conversely, if this support fails, a steep decline to $0.19 could occur, as highlighted by Ali’s analysis.
As of the latest data from CoinGecko, MATIC is trading at $0.3769. The token has experienced a price decline over the past day and week, making the monitoring of the $0.34 level particularly important for traders.
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