Will MATIC Break the $0.78 Resistance Amid Bearish Trap?

• MATIC price is facing a bearish phase, trading at $0.61.
• RSI was marked at 38.40, facing selling pressure.

The altcoin market has been dominated by bears in recent weeks, with little significant momentum. Although considerable changes and growth are anticipated, most coins are moving at a slow pace. However, MATIC, the native token of Polygon , has experienced a notable imbalance compared to the broader crypto market . MATIC has underperformed across recent time frames.

Despite expectations from the community, MATIC has not seen significant bullish corrections in recent months, and its price has remained relatively stable. Over the last 30 days, Polygon’s price has struggled to break the resistance and rise above $0.75. Currently, it is experiencing a downtrend, with its value dropping to $0.61 at press time, marking a decline of 1.05% in the past 24 hours. The daily trading volume stands at $211 million. Three days ago, MATIC hit a two-month low of $0.57.

Matic price chart (Source: TradingView )

In the meantime, Polygon Labs announced a Community Grants Program (CGP) on June 11, 2024, which will distribute 35 million MATIC tokens, worth approximately $24 million, among builders within the Polygon ecosystem. Applications for the CGP will be accepted from June 11 to August 31, with plans to allocate 1 billion POL, Polygon’s future replacement for MATIC, over the next 10 years.

Are Bears Pulling Back the Bulls?

Over the past week, MATIC has declined by 7.10%; on June 11, the token’s price was at $0.65. Additionally, it has seen a 14.52% decline over the last month. The daily Relative Strength Index (RSI) stands at 38.40, indicating that MATIC is in the oversold zone. Moreover, the 9D EMA is at $0.6058.

Analyzing the 24-hour price chart, MATIC’s initial resistance is around the $0.67 range. If it maintains upward momentum, the next key resistance levels are at $0.78 and then $0.90.

Conversely, if bearish trends persist, MATIC’s price could dip to $0.56. Further declines may push the token’s price to a support level of $0.50. If the bears continue to dominate, the price could fall into the $0.40 range.

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