MATIC Price Analysis: Bears Reach Oversold Levels, American Electronic DJ, Chainsmokers To Debut NFTs on Polygon

• Polygon (MATIC) suffered a decline in its price just like the rest of the cryptomarket
• At the time of writing, MATIC has improved slightly, trading down 9.88% at $0.584
• American electronic DJ and production duo, Chainsmokers is set to launch its NFT collection on Polygon

Polygon (MATIC) suffered a decline in its price just like the rest of the crypto market, tumbling as large as 20% on the prior day. At the time of writing, MATIC has improved slightly, trading down 9.88% at $0.584. American electronic DJ and production duo, Chainsmokers is set to launch its NFT collection on Polygon becoming the first-ever music band to reward its fans with a cut from the royalties from an entire album via NFTs. In nearly four months, the Polygon network has burnt more than 750,000 tokens. With the launch of the much-awaited EIP-1559 in Jan 2022, the Polygon network is expected to burn around 0.27% of MATIC’s supply every year. EIP-1559 is a novel mechanism first introduced on Ethereum that facilitates the burning of transaction fees. At a circulation supply of 7.8 billion MATIC, almost 1 in every 3000 tokens are getting burnt this way.

Key Levels
Resistance Levels: $1.00, $0.850, $0.750
Support Levels: $0.468, $0.300, $0.271

MATIC/USD Daily Chart: Bearish

MATIC/USD Daily Chart

MATIC took control of the trend after finding support at $0.468. The $0.750 level is being targeted by MATIC/USD, as seen in the intraday high, which also happens to be within a resistance area. MATIC/USD might begin its trek towards the upper end of the resistance area if its rebound is sustained above $0.700, bulls can push MATIC’s price back over $1.00.

In directional momentum, oscillators send bearish signals. However, the relative strength index is oversold at the moment and signals a few days of consolidation. If the MATIC drops below the daily low of $0.468 in the following session, the bears might increase their selling pressure. This might bring the price down to $0.271.

MATIC/USD 4-Hour Chart: Bearish

MATIC/USD 4-Hour Chart

The bearish momentum continues towards the end of the week on the lower time frame, reaching a new low at the support level of $0.468. A weekly close beneath the 4-hour moving average (MA 50) would bolster bearish sentiment even more. However, from its rebound price of $0.468, the MATIC/USD pair might produce a major bullish technical breakout.

Bulls might then aim for $0.750 and $0.850 intermediate resistance, which if broken would allow for a retest of monthly highs at $1.187. A break below the intraday low at $0.468 might signal a return of the downswing, with the next horizontal support being the target. A sustained breach will lead to support levels of $0.300 and $0.271.

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