Despite broader crypto market recovery gains, MATIC is under the bears’ control. BTC gains 2%, while ETH is up 1.23%
Another bearish trading day for Polygon (MATIC) token. Following key U.S. economic data, the market remains volatile. The Dow lost fell more than 200 points, while the S&P 500 and Nasdaq were down 1% amid concerns of a looming recession.
As of press time, MATIC/USD reads at $0.9350, down 0.31% for the day. As per Coinmarketcap, it is the tenth-largest cryptocurrency by market cap with $8.15 billion. The token powers the Polygon platform created to link and grow Ethereum projects and blockchains.
MATIC trades below the 50-day moving average
On the four-hour chart, the price is trading near the supply zone with the increased volume. If the bears sustain the lower level, the downside may continue toward the 0.50% Fibonacci retracement level.
Before diving below the 50-day Exponential Moving Average (EMA), the MATIC price has been consolidating near $1.0500 for the few sessions. This level coincides with the high made in November 2022.
Now, the price hovers near the resistance-turned-support level around $0.9372. In the past 1 hour, bulls seem to challenge this critical mark.
After breaching the 0.38% Fibonacci retracement level, the selling momentum recedes as can be seen with the formation of Hammer, a bullish pattern.
A close above $0.9500 would see a jump toward the psychological level of $1.0000 followed by $1,0500.
On the other hand, a shift in the bearish sentiment could reverse the gains and continue with the bearish movement. On moving lower, the immediate target could be found at $0.9094.
As the daily RSI (14) holds below 40, a bearish sentiment. Still, the market is far from the overstretched market condition.
