The daily chart shows that after setting an all-time high of $2.900 in May, the MATIC price entered a bear market. By July, Polygon was 78% lower and beneath the 200 DMA at $0.657. However, crucially, MATIC finished the day at $0.689, triggering the second bull market of 2021. Within two months Polygon was 190% higher, topping out at $1.875 on the 5th of September. Since then, the price has been heading lower, resulting in a descending trendline, capping the price at $1.128.
The 200-day moving average sits at $1.066, countering the trend resistance. If the MATIC price closes below $1.066, I expect to see a sharp decline. A logical target is the horizontal support of July’s $0.620 low, which coincidentally was the last visit to the 200 DMA. However, if Polygon clears trend resistance at $1.128, it would indicate the 200-day has done its job again. In that event, the bulls will be encouraged, and the MATIC price should quickly clear the 100 DMA at $1.281 and extend towards the September high.
The 200-day moving average sits at $1.066, countering the trend resistance. If the MATIC price closes below $1.066, I expect to see a sharp decline. A logical target is the horizontal support of July’s $0.620 low, which coincidentally was the last visit to the 200 DMA. However, if Polygon clears trend resistance at $1.128, it would indicate the 200-day has done its job again. In that event, the bulls will be encouraged, and the MATIC price should quickly clear the 100 DMA at $1.281 and extend towards the September high.
