MATIC, the native token of Polygon, has been making significant strides in its price recovery against the US dollar. After experiencing a recent decline, MATIC has managed to break above key resistance levels, hinting at a potential bullish trend. This article examines the recent price movements of MATIC and explores the possibilities for its future trajectory.
In the past few days, MATIC has steadily declined from its position well above the $1.00 mark. The price dipped below the crucial $0.900 support level, entering a bearish zone. However, the situation has changed as a recovery wave seems to be underway, mirroring the movements of popular cryptocurrencies like Bitcoin and Ethereum.
Key Breakouts and Resistance Levels:
One positive development is the break above a significant bearish trend line, which held resistance near $0.880 on the 4-hour MATIC/USD chart. This breakthrough indicates a potential shift in momentum. Furthermore, the price successfully surpassed the 23.6% Fibonacci retracement level, calculated from the downward move between the $1.017 swing high and the $0.8206 low.
Currently, MATIC is trading above $0.85 and is well-positioned above the 100 simple moving average (4 hours). The next challenge lies at the $0.90 resistance zone. If the price manages to overcome this hurdle, it could continue its recovery trajectory. A significant resistance awaits at $0.95, marked by the 61.8% Fibonacci retracement level.
Potential Upside and Downside:
Should the price breach the $0.95 resistance level, it could potentially trigger a sustained upward trend. In this scenario, MATIC might target the $0.985 level or even aim for $1.00, signifying a substantial recovery.
However, if the price fails to surpass the $0.90 resistance level, it could face a fresh round of selling pressure. Immediate support awaits at $0.88, with the primary support at $0.865. A breakdown below this level may open the doors for further decline, potentially leading the price toward $0.82. The subsequent primary support level sits at $0.80.
MATIC’s recent price movements have demonstrated a recovery attempt after a period of decline. The successful break above resistance levels and the emergence of a bullish trend line provide hope for further upside potential. Traders and investors are now closely watching to see if MATIC can clear the $0.90 resistance zone and embark on a sustained recovery or if it will face renewed selling pressure and retest support levels. As always, market participants should exercise caution and conduct their own analysis before making any investment decisions in the highly volatile cryptocurrency market.
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