Polygon price pullback to end soon as pickup in NFT sales emerges as bullish sign

Polygon price is down 5% for the week on Tuesday.
MATIC bulls were seen buying dips as NFT sales in Polygon exploded in the past few days.
Expect a buy-on-the-dip from bulls with MATIC soon back at $1.06.

Polygon (MATIC) price has been seen tanking sharply on Monday and Tuesday as price action slips further away from the 200-day Simple Moving Average (SMA). Although the sentiment looks bearish, one big element provides a bullish undertone. Expect to see a turnaround soon as NFT sales in MATIC are outpacing ETH sales substantially these past few days.

Polygon price could quickly turn into a bear trap

Polygon price has broken the support from the 200-day SMA as bears are pushing MATIC against $0.96 with a pivotal level and the monthly S1 support level nearby. Although the sentiment looks very bearish, there is one big bullish element that should not be ignored. According to Sealaunch.xyz, NFT sales have recently surged in favor of Polygon and are now outpacing ETH-based sales.

tweet sealaunch.xyz

MATIC could soon turn 180 degrees and heading back upwards as bulls will buy eagerly on the dips as support is being respected for now. With the Relative Strength Index (RSI) back in oversold territory, it has become clear that bears have very limited to no room to push further downwards. Expect to see a possible bear trap unfold with bears soon being stopped out once bulls trade MATIC back above the 200-day SMA and head for $1.06 in a bear squeeze.

MATIC/USD 4H-chart

Although NFT sales have peaked, traders could ignore it as a one-off event and not contribute anything substantial to the current valuation for MATIC. Once $0.96 has cracked under pressure, the next leg lower points to $0.87, nearly 10% lower. In case the descent accelerates into a falling knife, $0.82 could be the level to watch for MATIC to start slowing down or halting its decline.

Share: Cryptos feed

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.