Crypto analyst Ali has highlighted a key price pattern in Polygon (MATIC) in his tweet. He suggests that its near-term direction hinges on the $0.34 support level.
Forming a Descending Triangle
According to Ali, MATIC is forming a descending triangle, a bearish indicator that could signal further downside if the support breaks. However, holding above this level may lead to a potential price rebound. This horizontal line serves as a key price floor, where buyers may step in to prevent further decline. If this level holds, it could trigger a rally back to $0.94, as mentioned by Ali. Besides, the 0.786 Fibonacci retracement level, located around $0.47, serves as the first resistance zone. This level suggests a more thorough retracement because it coincides with the 1.618 Fibonacci extension.
What Happens if $0.34 Breaks?
In the event that the $0.34 support does not hold, Ali warns of a significant price correction, potentially down to $0.19. This level aligns with the 1.618 Fibonacci extension, signaling a deeper retracement. Such a breakdown could lead to further losses for MATIC holders if the price falls below the support line. Moreover, the downward trendline further complicates the situation, serving as an additional resistance point. Even if the price rebounds from $0.34, it will face challenges from this trendline, coupled with the Fibonacci levels, before any bullish outlook is confirmed.
Watch the $0.34 Level
In summary, the $0.34 support level is a critical zone to watch for Polygon (MATIC) traders. If it holds, the possibility of a rebound toward $0.94 exists. However, failure to maintain this level could lead to a steep drop to $0.19, as indicated by Ali’s analysis.
As per data from CoinGecko at press time, MATIC trades at $0.3769. The token has had a price decline over the past day and week. The $0.34 support level remains key for the token’s future price movement.
Comments