India-based cryptocurrency Polygon (MATIC) looks poised for a bounce back after a steep slide earlier in the session and a broader sell-off mood in the overall cryptocurrency market. At the time of writing, MATIC/USD is trading around $1.31.

Last week, we saw MATIC’s price soar to a high of $1.71; however, the upbeat mood was overturned and the price slid lower since then, causing the digital asset to lose over 12% of its value over the past seven days. The weekend trading has also not been going its way, with Polygon weakening by more than 4% in the past 24 hours alone.

The downtrend in MATIC could see a possible reversal soon, with the digital currency enjoying some support from emerging reports about how leading investment firm Grayscale is planning to add new crypto assets to its list of offerings, which include Polygon. Late last week, the company published a blog post in which it confirmed its interest in adding 13 new digital assets; however, the decision will only be finalized based on an in-depth review which could take some time.

In the meantime, there may be some opportunity for buyers to get in on the game when the market is trading bearish. Technical indicators suggest that the MATIC price is likely to consolidate over the coming sessions before heading towards a breakout, most likely to the upside.

Key Levels to Watch

The moving averages on the H4 chart of MATIC/USD are suggesting a bearish bias, although the momentum indicator points to a possible buying interest building up. For now, however, the price has some way to go to reach and cross the pivot point which sits around the $1.46 level.

On a promising note, however, Polygon’s rate is comfortably holding well above the immediate support at $1.21. In case buyers jump in at this point, we could see a bullish trend forming to take the price up to test resistance at $1.64 and then at $1.89 soon.