MATIC/USD is trading near the 1.54000000 mark in early trading this morning after a swift decline in price was exhibited yesterday. MATIC/USD has correlated to the broad cryptocurrency market, but it also remains intriguingly outside of an important technical factor. Polygon remains above its lower values which were seen in June, July and August of 2021.
Technically, why this may prove important is the suspicion that MATIC/USD has remained above these support areas while many of its major counterparts have not. Yes, MATIC/USD has experienced a bearish trend. Yes, MATIC/USD has lost a huge amount of value since the second week of January. However, Polygon still has not broken through mid-November 2021 support with a sustained crash.
This is not to predict a crash in MATIC/USD is a certainty, but it is a rather interesting piece of evidence within its technical trading results. After making exuberant highs in May of last year when the price of MATIC/USD hit nearly 3.50000000, the cryptocurrency token was shaken and suffered losses like its major counterparts. A low of nearly 0.63000000 was seen in mid-July. However, Polygon has not suffered the same type of losses other highly ranked cryptocurrencies with solid market capitalization have seen since rebounding to healthier values and achieving a high of nearly 2.95000000 in late December of 2021.
The value of MATIC/USD may speak to its potential within the world of crypto as a token that investors genuinely believe in, or a signal additional volatility in Polygon could develop lower. On the 24th of January MATIC/USD traded below the 1.30000000 mark briefly, but it was able to recover and climbed to a price of nearly 1.82000000 a couple of days later. Since then MATIC/USD has seen choppy trading as it mirrors it major counterparts. After a slight recovery early this week, yesterday’s decline once again have challenged important support and the 1.45000000 appears important below.
Traders who are skeptical about MATIC/USD in the short term may want to continue to pursue selling positions of the cryptocurrency. If Polygon develops further weakness and hits support levels around the 1.45000000 mark it could signal that another wave of stronger selling could be demonstrated. If November support levels begin to look vulnerable, Polygon may be facing another test of values which could spark nervous sentiment among its influencers.
Polygon Short-Term Outlook
Current Resistance: 1.66750000
Current Support: 1.46100000
High Target: 1.83400000
Low Target: 1.24750000
