- MATIC price regains bullish groove with a 29% gain, besting most cryptocurrencies.
- Polygon volume profile finally reveals accumulation yesterday, with daily volume coming in at 3x the daily average.
- 200-day simple moving average (SMA) serves as a springboard as prominent investors accumulate digital assets.
MATIC price closed yesterday with the best gain since the 63% gain recorded on May 24, marking a trend reversal for the Indian blockchain. Moving forward, Polygon confronts three tactical resistance levels that may impede a quick follow-through on the dynamic rebound. In fact, buying on weakness may provide the best approach to participating in a new advance.
MATIC price consolidates the bullish turn making patience imperative
MATIC price exploded onto the scene again with a headlining gain of 29%, pushing near the top of the cryptocurrency complex list of top performers. It was a loud rebuttal to the -40% decline that had dominated price action since the breakdown from the symmetrical triangle pattern on July 12. Nevertheless, Polygon is only up 10% for the week and is still down -25% in July, emphasizing the recent challenges for market speculators.
The MATIC price event was notable but what induces a renewed conviction in the Polygon story is the commitment and emotion displayed by investors, as it was the first positive day on above-average volume since the May 26 gain of 14%. The robustness of the bid reveals the engagement of prominent and institutional investors at the strategically important 200-day SMA at $0.66.
Yesterday’s rebound struck resistance at the June 22 low of $0.92, as well as today. It is one of three technical challenges that await eager Polygon market operators. The second resistance point is the symmetrical triangle’s apex at $1.06, followed by the 50-day SMA at $1.18. A rally above the moving average puts MATIC price on a path to the June 15 high of $1.75 and an 85% gain from the current price.
MATIC/USD daily chart
If there is an eagerness to be involved with Polygon, it is recommended to use a trade above yesterday’s high of $0.95 to trigger accumulation. The recommendation is based on the constructive MATIC price action since the rebound high, showing no selling on the intra-day charts as it constructs a pennant pattern.
A more profitable alternative is to allow MATIC price to correct some of the rebound and use the weakness to build a position. Levels of interest include the 50 four-hour SMA at $0.82 and the May 23 low at $0.74.
MATIC/USD 4-hour chart
If a MATIC price pullback accelerates into sell-off, the 200-day SMA is the critical support level on a daily closing basis. A close below the moving average raises the probabilities of the correction continuing, putting Polygon at risk of testing the March 11 high of $0.54 or, potentially, the 38.2% Fibonacci retracement of the 2021 advance at $0.39.
The constructive price action on the intra-day charts supplemented by the commitment and emotion behind the 29% gain tilts the outlook bullish. To participate, buying on weakness is the preferred option, but bullish opportunities usually emerge when momentum transforms into a pennant formation, as with MATIC price. Either way, there is impressive upside potential for Polygon investors.
Here, FXStreet's analysts evaluate where Polygon could be heading next.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
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).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
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.
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.