Polygon (MATIC): This Can Trigger Yet Another 22% Crash

  • MATIC encountered a massive crash, losing more than 17% this week and primed for more declines.
  • A lower low beneath $0.477 9 May swing low might see Polygon losing another 22%.
  • Bullish engulfing candle validation beyond $0.686, though unlikely, will cancel the bearish narrative.

Polygon (MATIC) showed a successful break of a consolidation phase following the latest weekly candle close. Bears pushing the alt for a lower low would mean another substantial crash for MATIC. Meanwhile, bears dominate the broad crypto space.

MATIC Hangs on Thread

MATIC climbed to an ATH of $2.69 in May last year and another near $2.92 during December 2021 sessions. The alt remained stuck within a range after that, stretching between the base at $0.686 and its ATH.

Nevertheless, May’s third week saw MATIC breaching the mentioned barrier. The token saw two weekly candles elapsing since then, affirming an overturn of the support of $0.686 into resistance. Polygon remains weak, and bulls might catalyze further losses.

MATIC producing a lower low beneath the $0.477 swing low will authorize a bearish regime. Such cases might see the alt on another 22% crash to explore the $0.381 weekly support. Though chances of massive retracements prevail, buyers will likely step up here to cauterize Polygon’s bleeding.

Meanwhile, the altcoin forming a weekly optimistic engulfing candle that closes beyond the hurdle at $0.686 will invalidate the bearish thesis. That would confirm Polygon bulls’ resurgence. MATIC should retest the mentioned level to authorize a successful flip.

While publishing this blog, Polygon traded at $0.4722, losing 7.93% within the past day. The altcoin appears weak and ready for more declines. Besides the mentioned recovery hopes, MATIC will rely on broad market sentiments for its upcoming trends.

The crypto market continued downtrends on Monday. The global cryptocurrency market cap dropped 7.58% to $1.02 trillion. Meanwhile, the metric confirms deteriorated prices in the crypto space.

Bitcoin encountered a massive slump overnight, trading at massive lows of $25,370, following a 7.74% 24hr loss. The alt market suffered the most, with Ethereum losing over 10% to $1,326. MATIC will likely follow downtrends in the near term amidst such market situations.

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