Polygon (MATIC) is undoubtedly a promising cryptocurrency with decent scaling plans, but what would any plan do if the sentiment around cryptocurrencies is failing. Polygon has entered a strongly negative trend, and it will be challenging for it to get out of this selling pressure.
Therefore, only a crypto-wise buying sentiment will be able to initiate some buying action. Backed by leading cryptocurrency exchanges Binance and Coinbase, the growth potential might be relevant, but it does not affect the price action we are witnessing now.
MATIC Price Analysis
MATIC cryptocurrency is clearly in a downtrend, but the price action has taken support from the most substantial level of 200 DMA. Consolidation near this level would eventually lead to a breakout indicating further weakness in this crypto-asset. MATIC is so far down by 38% in September alone, and only 45% away from its four-month low value of $0.6176.
Despite taking support from the 200 DMA, MATIC will face difficulty reclaiming any of its previous support levels, as previous holders will be looking for such opportunities to exit their positions. In fact, we are witnessing a similar price trend in the last few days to that of the May 2021 fall.
According to our Polygon forecast, the coin can be seen creating a double top pattern on longer time frame charts. Breaking the $0.6176 level on any time frame will bring an extremely negative sentiment. However, MATIC has previously taken support from the level, which might become a positive sentiment enforcing buying at the $0.6176 level.