The decline in the crypto market has been replaced by a recovery today, albeit a bit. However, there are no signs of an upward move yet. Crypto analyst Filip L says that leading altcoin rival Polygon (MATIC) is under pressure from both sides. The analyst expects a mid-term breakout as price action begins to trade narrowly. We have prepared Filip L’s analysis of MATIC for our readers.
Altcoin price action coupled with bears and bulls converging
cryptocoin.com As you follow, Polygon (MATIC) price has made lower and higher lows in price action since mid-June. That’s why MATIC sees both bulls and bears converging. As a new month begins, the new monthly pivot level is repriced in the ASIA PAC and European session just in the middle of today’s price action. Will MATIC close above or below the base level? This is important to determine which trend will occur in July. Therefore, it will be important to see it close to the closing bell tonight.
Altcoin price action combined with bears and bulls converging. So, MATIC price is tight from both sides. This fact is also represented in the Relative Strength Index (RSI), which trades above 50 after exiting the oversold. So far, everything looks good at this price balance. But the start of a new month reprices crucial monthly pivot levels. It also places the middle axis almost at the center of today’s price action. This makes it a crucial element in determining where price action will close tonight.
35% loss probable for MATIC
The current market narrative of MATIC price is still quite bearish. Also, the stock markets have started a new low in the past few days. Because of all this, MATIC is expected to close below the monthly pivot for July. A break below $0.450 and a drop towards $0.300 is possible with new monthly support for S1 positioning before $0.269 to catch any price drops ahead of time. That means roughly 35% negative results and a possible new low for this year.
Where is the altcoin price likely to go if a rally develops?
As mentioned above, today’s daily close is likely to be above the new monthly pivot. As we enter the weekend, the volume is dropping a bit and the movements are stretching faster. Therefore, a rally towards $0.545 is likely. Because there will be fewer market participants available. The 55-day Simple Moving Average is the only obstacle to breaking the rally as in the past. While this could be proven again, even $0.620 wouldn’t be impossible.
