The MATIC price has pulled back around 15% from last week’s five-month high of $2.220 to a test of the trend line support. Polygon (MATIC) is trading at $1.920 (-4.30%), down -7.39% over the last seven days. MATIC’s current market cap stands around $13.1 billion, ranking it the 19th most valuable cryptocurrency behind Litecoin (LTC).
Polygon performed well in October, gaining 75% by the 28th, eventually ending the month +48% higher. However, even though the total value of altcoins reached a new record in the last couple of days, the MATIC price is trading at a 33% discount from its May all-time high of $2.787 and shows signs of fatigue.
Furthermore, apart from Dogecoin and Shiba Inu, Polygon is the worst performing top-20 crypto this week. As a result, the token is walking a tight rope above a significant support level, which could prove pivotal.
Polygon Price Analysis
The daily chart shows that Polygon is trending higher in a rising channel and consolidating above the September high of $1.800. As I write, MATIC is testing the bottom of the channel at $1.914. If the price falls below this level, $1.800 is a logical destination. Below $1.800, I expect an extension towards the tightly-bunched 50, 100 and 200-DMA’s between $1.287 and $1.451.
On the other hand, if the price respects the trend and turns higher, it should advance to the September high of $2.220. Successful clearance of $2.220 targets the top of the rising channel $2.400.
The bullish argument carries more weight considering the overall buoyancy of the crypto market and the rising trend—however, a close below $1.800 invalidates this view.