- MATIC price made several attempts to nullify any future selling pressure but could not achieve that goal.
- Sellers rejected higher prices and helped confirm a likely bearish continuation setup.
- Buyers have a challenging but not impossible path to returning Polygon to bullish conditions.
MATIC price made a strong attempt to initiate a bullish break of some key resistance levels over the past few days. However, buyers were stopped by clear selling pressure, giving bears the signal that another leg south was likely to commence. But bears have, yet again, not followed through, creating confusion for bulls and bears.
MATIC price rejected against critical Ichimoku resistance but found support at a key Fibonacci level
MATIC price has come under renewed pressure as investors and traders become more and more risk-averse. A combination of the continued Russian invasion in Ukraine and poor but not unexpected US CPI data reinforced to market participants the importance of a flight to safety. Unfortunately, cryptocurrencies are still considered risk-on and experienced the same selling pressure as stocks.
MATIC spent most of the trading day near the $1.37 to $1.39 support zone where the 100% Fibonacci extension and the 78.6% Fibonacci retracement of the 2022 low to the high of the weekly strong bar exist. However, $1.37 represents the likely final support level before MATIC price slides further towards the $1 value area.
MATIC/USDT Daily Ichimoku Kinko Hyo Chart
If bulls want to invalidate any further near-term bearish price action, then they’ll need first to push MATIC price to a close above the Kijun-Sen, Tenkan-Sen, and the 61.8% retracement of the 2022 low to the high of the weekly strong bar – at or above the $1.61 value area. Ideally, buyers could rally MATIC above the Ichimoku Cloud, but that would require a significant rally to achieve.