Polygon Slides 2.2% to $0.755394 - Maintaining Uptrend?

Polygon's MATIC token has pulled back today, dropping 2.2% over the past 24 hours to around $0.755. However, MATIC remains up a solid 7.5% over the past 14 days, as the cryptocurrency continues showing signs of strength.

Comparing MATIC to Ethereum's Diverging Trend

It's interesting to note MATIC's price decline comes as Ethereum, the blockchain MATIC aims to scale, has seen bullish momentum, rallying 2.3% in the past day. This divergence suggests traders may be taking profits on MATIC after its recent rally and rotating into ETH.

Additionally, MATIC at $0.755 remains massively down from its all-time high near $2.92. In contrast, Ethereum is trading much closer to its own ATH around $4,800. This setup indicates MATIC may have more room to fall against ETH.

Monitoring the Crucial $0.75 Support Level

MATIC is now battling to hold the psychologically-important $0.75 support after sliding below this level today.

Losing $0.75 on a decisive breakdown could trigger a drop towards $0.68. However, if the bulls can reclaim $0.75 as support, it would confirm the overall uptrend remains intact.

On the upside, MATIC must regain the $0.80-$0.85 zone to signal a short-term trend reversal. Near-term resistance appears strong, so further choppy consolidation is likely.

MATIC Price Prediction - Continued Weakness?

Given MATIC's bearish divergence and failure to reclaim $0.80 so far, I expect additional weakness in the near-term. The 200-week moving average around $0.52 is the crucial long-term support to watch.

I anticipate MATIC will break below $0.75 support and decline towards the 200-week MA before finding a bottom. Rallies are likely to encounter stiff resistance around $0.80. However, the longer-term uptrend remains in play barring a breakdown below $0.52.

Is MATIC a Good Buy at Current Levels?

The risk/reward profile looks attractive for long-term investors to accumulate MATIC around current levels near $0.75. However, proper risk management is key, as a drop below $0.75 could lead to a sharp move lower.

Patiently waiting for a confirmed trend change would be the most prudent move. The 200-week MA around $0.52 is the line in the sand bulls must defend to avoid a macro bear market. Overall, MATIC appears relatively weak against competitors like ETH, so caution is warranted.

What Are the Most Important MATIC Price Levels?

On the downside, the two key levels to watch are the current support at $0.75 and the 200-week MA near $0.52.

On the upside, MATIC needs to reclaim the $0.80-$0.85 resistance zone to suggest the rally is back on track. The major macro resistance to watch is the all-time high around $2.92.

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