Polygon (MATIC) Breaks the 200 DMA Support Level
Despite holding on to its long-term valuation above $1 for the first week of July when all other cryptocurrencies and Alt coins were falling, MATIC has finally succumbed to the selling pressure and overall negativity in the crypto market.
This negativity emerges from the grayscale unlocking of major cryptocurrencies such as Bitcoin and Ethereum. While technically it has nothing to do with MATIC and other alt coins, whenever a king falls, so does the entire kingdom. In this case, the fall of Bitcoin price below $30000 on daily charts has initiated a selling pressure on the broader crypto market.
MATIC Price Analysis
After breaking the important support and buying zone active between 70 to 85 cents, MATIC has lost its buying support zone. In fact, when compared with the majority of altcoins, it is the only cryptocurrency that is still trading close to its 200 DMA when all others have tumbled down.
One day chart is instrumental in identifying further downside potential of MATIC. Technically, with the rise of COVID cases and the downfall in major money markets, cryptocurrency becomes the obvious choice for investors. This time both scenarios have come together to haunt investors. MATIC being one of the stronger cryptocurrencies, is struggling to keep above the selling pressure. So far, it has breached 200 DMA on a daily basis, which is a good sign.
200 DMA is considered a long term support zone, and there should be good buying at these levels. Such a buying play can push MATIC to higher levels. It needs to reclaim a $1.25 value to turn bullish again. RSI has also plummeted to oversold zones for the first time since November 2020.
Based on our MATIC coin price prediction, investing at such a valuation and scenario should be done after a carefully decided plan. Polygon (MATIC) still has the potential to head downwards if it closes below the 200 DMA on daily charts. Investors at this level could enter the beginning of an uptrend since assets seem to bounce back from 200 DMA line.