MATIC price might pullback, but on-chain metrics indicate Polygon is due for 30% advance


  • MATIC price is likely to retrace to the $1.435 support level after failing to reclaim the $1.726 resistance barrier.
  • The retracement will allow bulls to recuperate for a new leg-up to $1.892.
  • On-chain metrics indicate a steady growth of new users, supporting the bullish thesis.

MATIC price is contemplating a retracement after it failed to conquer a resistance barrier. This downswing will serve as a break for the bulls, allowing the sidelined investors to jump on the bandwagon and kick-start a new leg-up.

MATIC price eyes higher high

MATIC price rallied 33% after it retraced to $1.272 on August 18. While this upswing was impressive, it failed to slice through the $1.726 resistance level, leading to a consolidation that will likely evolve into a retracement.

The $1.435 stable support barrier is likely to absorb the selling pressure, allowing for the start of a new uptrend.

Although unlikely, in some cases Polygon might form a double bottom around the August 18 swing low at $1.272. Investors can expect a new rally to begin at $1.435 or $1.272 in either case.

The resistance level at $1.726 will be the first barrier the bulls need to shatter to indicate a new rally’s start. Following a breach of $1.726, MATIC price will retest $1.892, a roughly 32% upswing from $1.435.

MATIC/USDT 12-hour chart

MATIC/USDT 12-hour chart

IntoTheBlock’s Global In/Out of the Money (GIOM) model shows that MATIC price could not cross a resistance cluster ranging from $1.54 to $1.69. Here, roughly 13,800 addresses purchased 54.89 million MATIC tokens.

The inability of the buyers to resolutely conquer this price territory seems to have caused this short-term retracement.

However, this index also shows that nearly 18,200 addresses purchased 130.5 million tokens at an average price of $1.47, which will serve as a strong support level for restarting an uptrend.

Interestingly, this level approximately coincides with the area mentioned above.

MATIC GIOM chart

MATIC GIOM chart

While a retracement seems inevitable, new investors joining the Polygon network appear to be on an uptrend. Over the past month, the number of daily new addresses increased from 2,200 to nearly 3,000.

This 36% increase indicates that market participants are interested in MATIC at the current price levels, which serves as a proxy to the inflow of capital, which paints a bullish picture.

MATIC daily new addresses chart

MATIC daily new addresses chart

While things seem to be looking up for MATIC price, a breakdown of $1.435 will indicate weakness among buyers. If the bulls fail to set up a base around the August 18 swing low at $1.272, the upswing will be in jeopardy.

However, a breakdown of the $1.248 support barrier will invalidate the bullish thesis entirely. This move will open the path for a further downswing to $1.136.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP