Polygon (MATIC) has seen a slight rebound today after falling below what analyst Ali described as a “crucial supply zone” earlier this week. MATIC is currently trading around $0.78, up roughly 3% in the last 24 hours.
Popular crypto analyst Ali posted a warning on X (former Twitter) about the token slipping under the $0.84 to $0.86 range. As Ali explained, over 14,000 addresses hold more than 4 billion MATIC in this price band.
If the price were to stay below this level for an extended period of time, Ali cautioned that some of these holders may start selling to cut losses.
MATIC did spend the next couple hours struggling to regain the $0.84 support level. However, it seems the token has found its footing today with its 3% bounce back. Still, MATIC remains below the key supply zone Ali identified, currently sitting around $0.78.
It remains to be seen whether this mini-rally will be enough to keep those 14,000 addresses from panic selling. Some Polygon investors on X have expressed optimism that MATIC may be carving out a bottom. However, other analysts warn there could be more downside if overall crypto market conditions worsen.
Read also:
- Ripple (XRP) Eyes Multi-Year Highs if This Fourth Accumulation Pattern Holds True – Analyst
- Best Crypto Coins for Gamers
- Crypto Millionaire Set His Sights on a New Lowkey Crypto Gem for 2023
Going forward, the $0.84 to $0.86 range seems poised to act as an important inflection point for MATIC’s price action. A decisive break back above this supply zone could signal a bullish shift in market sentiment. But failure to recover this level could open the door for a steeper selloff as nervous holders throw in the towel. MATIC investors may want to keep a close eye on this key price region.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
