MATIC finds support at $2, but buying right now might not be the best idea

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and shouldn’t be considered investment advice

Polygon saw the price of its native token drop by nearly 16% over the last couple of days, but some demand was seen in the vicinity of the $2-support level. When the price was at $2.42, it looked like MATIC was on a lower timeframe breakout upwards.

Combined with the importance of the $2.42 level in recent weeks, the reaction of the price at $2.42 is a good indication of the sentiment surrounding MATIC. The reaction was bearish and the price was back at a zone of demand.

In other news, Polygon adopted EIP-1559, the network fee burning mechanism that Ethereum introduced in August last year.

Source: MATIC/USDT on TradingView

The $2-$2.1 area has served as an area of demand for MATIC in the past. In a similar fashion, rejection at the $2.12-level has seen MATIC dive toward $2 and $1.93 in search of demand. At the time of writing, MATIC had already been rejected at $2.12 the previous day.

Yet, the price formed a (marginally) higher low on the hourly chart. This might lead to the price forming a triangle pattern of lower highs and higher lows just beneath the $2.12-level. Such a pattern would represent compression.

Regardless of the pattern that evolves in the next few hours, $2.12 remains a significant resistance level. A flip of this level back to support would be necessary for MATIC to climb higher. Another rejection could see $2 and $1.93 tested shortly.

Source: MATIC/USDT on TradingView

The momentum indicators showed that bearish momentum was waning. Both the Awesome Oscillator and the MACD formed a series of higher lows over the past couple of days. This came alongside the price seeing lower lows