- Polygon price faces a potential dump to lows of $0.94 if bears breach a major support area.
- MATIC is currently below the 50 simple moving average and 4-hour RSI is below 50.
- A downward flip for Bitcoin could impact MATIC movement.
Polygon price has seen an extended downward trajectory since the sell-off that hit the broader crypto market in late 2022.
A strong bounce in the first two months of the year has however hit tough terrain with price declines across the market contributing to MATIC reversing course, with a potential breakdown to lows of $1.00 likely if bears take further control of short term market sentiment.
In particular, the outlook for Bitcoin suggests bears are not ready to give up territory around $22,500, a scenario that could see BTC dump and catalyse fresh losses across the market.
Polygon price forecast: Technical picture for MATIC above key support
MATIC continues to hover above $1.00, but looks constrained below the recent supported turned resistance zone around $1.15.
A slight upside early Tuesday indeed looks to have hit a supply zone near this price range, although with the 4-hour chart printing four successive green candles, the chances of bulls retesting resistance at $1.18 are there.
Notably, the Polygon community is awaiting the launch of the zkEVM mainnet beta, an event likely to trigger new buying momentum for the cryptocurrency towards the scheduled rollout on 27 March.
Polygon price on the 4-hour chart. Source: TradingView
If the $1.15 support holds, a new breakout could see bulls reclaim $1.18 as support. A pump above this level could push MATIC/USD to $1.25 and possibly the main hurdle around $1.29. However, the 200 MA is flat lining near $1.27 to offer the immediate resistance line.
Polygon price bearish picture
As highlighted above, MATIC price is currently trading below the 50 SMA and the 4-hour RSI is slightly sloped below 50 after bouncing off the bearish line.
On a further technical outlook, the MACD indicator recently flipped bullish, but Polygon’s price is facing major resistance near the 23.6% Fib retracement level of the move from the $1.30 swing high to the $1.10 low.
If a breakdown happens, and bears gain the upper hand, MATIC could dump to support at 1.07 and then under $1.00 to $0.94.