MATIC price drops 10% despite the allure of Polygon PoS as a hub for decentralized applications
- Polygon price faced a 10% rejection from the $1.0000 psychological level to find support at $0.8146.
- It comes despite Wipro joining other dApps already building on Polygon PoS for its Falcon product.
- MATIC could extend the fall by 15% if the mean threshold at $0.8501 of the three-day supply zone gives way.
- The bearish thesis will be invalidated upon a decisive candlestick close above the $1.0383 resistance level.
Polygon (MATIC) price is at an inflection point after its upside trajectory met significant opposition from a crucial supply barrier. It comes despite growing interest from decentralized applications taking a liking to the Polygon proof-of-stake (PoS).
Also Read: Polygon price could fall further as increasing number of MATIC holders sit on losses
Polygon PoS onboards Wipro
Polygon has on boarded Wipro, after the technology services and consulting company launched its Falcon industrial supply chain management platform on the Polygon PoS. Falcon looks to leverage the growing demand for a “solution offering the added security of blockchains safeguarding the integrity and immutability of data exchanged across the industry supply chain.”
With the move, Wipro joins the many decentralized applications (dApps) that are already building on Polygon PoS, including Adidas, Stripe and Adobe, among others.
MATIC price prognosis
Polygon price tested the $0.8146 support level before a pullback after breaching the $0.8501 midline (mean threshold) of the supply zone extending from $0.7715 to $0.9255. However, with the Relative Strength Index (RSI) still above the 50 level and the histogram bars of the Awesome Oscillator (AO) still flashing green in positive territory, the bulls still have a fighting chance.
Increased buying pressure could restore MATIC price back above the mean threshold of $0.8501. A strong move above the upper boundary of the supply barrier at $0.9255 could boost MATIC price to the $1.0000 psychological level.
Further north, the gains could extend for MATIC price to test the $1.0383 resistance level, whitewashing any bearish sentiments for the short term In highly bullish cases, springboard to the February supply barrier stretching between $1.2306 and 1.5236. A three-day candlestick close above the midline of this order block at $1.3783 would confirm the continuation of the trend.
MATIC/USDT 3-day chart
Conversely, if the supply zone fails to flip into a support level, MATIC price could fall through, potentially extending to the $0.7042. In the dire case, the slump could extend to the $0.4894 support floor. Such a move would constitute a 40% drop below current levels.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
