Polygon (MATIC) Downward Trajectory Faces Resistance At $0.94 Level
Even with the encouraging reports of Polygon reaching a deal and becoming one of the most-acquired tokens by ETH whales, the future of its native token, MATIC, doesn’t look very bright.
From September 13th, it is in line with the rest of the cryptocurrency market. The Sept. 7-12 rally was finally vetoed by the bears at the $0.9403 resistance.
Since then, the value of the coin has plummeted by a staggering 20.65% over the same 5-day time frame. At the time of writing, the coin’s price is hovering around the 78.60 Fibonacci retracement level between $0.6898 and $0.7770.
Traders should watch both the 61.80 Fib level (now $0.6989) and the 0.7185 support. These two factors offset the downtrend and gave upside momentum on the hourly chart, marking some much-needed support.
Polygon bullish momentum hints at demand
Also, bullish momentum appears to be forming on the 1-hour time frame. An increase in the Stoch RSI value indicates that the demand for cryptocurrencies is increasing.
Also, the momentum indicator shows that the trend is rising. However, the amount of momentum generated here can have a big impact on the wider picture.
This small upward trend may be attributed to the expanding development activity in the Polygon chain. According to a recent analysis, an increase in development activity could indicate that teams are integrating new features or patching existing ones.
This further increases the confidence of investors and traders. However, as the cryptocurrency market recovers after the September 13 sell-off, the recently announced partnership between Polygon and Flipkart may accelerate MATIC acceptance and help expand the Polygon ecosystem.
MATIC Price: Potential Buying Pressure
In light of this, does Polygon’s recent progress inspire confidence? Indeed, it does exactly that. However, recent advancements are not the main reason for the price increase.
These signs also point to a strong buy signal as prices fall. The bull and bear indicators reveal the same message. As the bulls gain momentum, the Stoch RSI will also rise, indicating a significant increase in buying pressure.
This may have an impact on MATIC’s overall recovery. If the bulls can stabilize at the 71.80 Fibonacci level, another bullish move is likely to support the price’s upward momentum.
The $0.7395 price range represents a major resistance level on this chart. If the bulls pick up the pace and break this resistance, MATIC coin could be on the verge of a recovery.
MATIC total market cap at $5.9 billion on the daily chart | Source: TradingView.com Featured image from Coincu News, Chart: TradingView.com