Polygon price forecast: MATIC finds support in its status while in the oversold zone

Polygon price dropped lower on Friday after being range-bound since the beginning of December. On the one hand, recession concerns have been a major bearish driver for the altcoin. However, it continues to find support in its status as a solution to ethereum’s challenges.

Risk-off sentiment

As its notable in the broader crypto industry, polygon price remains under pressure from the heightened fears over a recession. Concerns over global economic growth remain a key bearish driver for risk assets including cryptocurrencies and stock market.

Earlier in the week, polygon price made some subtle gains following the lower-than-expected US CPI data. The figures increased hopes that the Federal Reserve will ease on its interest rate hikes. However, a hawkish stance during the Fed interest rate decision publicized on Wednesday reversed those gains as it heightened recession fears.

Despite the bearish market sentiment, polygon price continues to find support in its position as a solution to ethereum blockchain’s challenges of scalability, security, and decentralization. In the coming weeks, it will be interesting to see if this factor offers steady support to the altcoin.  

Polygon price prediction

MATIC/USD has been trading sideways for about two weeks. However, on Friday, the bears ended the trend to test the crucial support at around 0.8200. Notably, this will remain a support level worth watching over the weekend.

As shown on its four-hour chart, polygon price was trading below the 25 and 50-day exponential moving averages. Besides, with an RSI of 25, it is in the oversold territory. As a corrective rebound, it may rise to 0.8604 or higher at 0.8800 over the weekend.

Subsequently, the bears may gather enough momentum to retest the support at 0.8200 or lower at the psychological zone of 0.8000. However, this bearish thesis will be invalidated by a move above 0.9000, which is along the 50-day EMA.

polygon price
polygon price

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