In the wake of extensive selling going on within the crypto space, most of the tokens tend to shed their gains. Including Bitcoin price, Ethereum price, Polyon (Matic) price, etc, many cryptos flipped into bearish divergence after registering a slight uptrend.
Matic price after continued to trend within a narrow range after June Crash as trading volume depleted. However, a sudden spike led to an extensive activity but woefully for mainly for selling. The price is about to break the support levels indicated by Bollinger Bands and also the 50-day MA.
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The price broke the strong support levels at $1.20 and continued to move towards the south, testing the next support levels at $0.99. The price had bounced off these support levels in the recent past and a similar trend could be on the way.
Currently, the bulls need to jump into action to prevent further price drain. As the extreme selling pressure is currently restricting the price below $1.01. However, the price needs to bounce back towards the critical resistance around $1.3 in order to resume an uptrend. Else the rejection may lead to revisiting heavy support levels around $0.97. In the worst case, if these levels are broken then the lower support levels at $0.45 could be imminent.
Collectively, the slashing volume indicates the lessened interest of the traders. In fact, due to this, the volatility is also hampered to large extent. Therefore, if a large jump is needed then the bulls are required to take control. And hence Polygon(MATIC) price could regain the lost momentum to propel further.
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