Share:
  • MATIC price is consolidating inside a symmetrical triangle pattern awaiting a breakout.
  • A decisive close above either of the trend lines results in a 40% move.
  • Transactional data shows stacked barriers that could deter Polygon’s upswing.

The MATIC price is in a consolidation pattern with no inherent bias. Hence a breakout from this phase could push the token’s price in either direction.

MATIC price awaits a breakout

The MATIC price slid into consolidation, creating lower highs and higher lows due to aggressive yet diminishing pressure from both buyers and sellers. By connecting the swing highs and lows using trend lines, a symmetrical triangle pattern forms.

This technical formation forecasts a 40% breakout, which is the distance between the swing high and low created on March 11 and 12. 

Since this setup has no bias, a decisive close above $0.38 will result in a 40% bull run to $0.54. On the other hand, a breakdown of the lower trend line at $0.31 will kickstart a downward trend to $0.19.

An increased seller activity at the current price will quickly push Polygon toward the lower trend line. However, a breakout here will spell trouble for the MATIC price. A 13% drop to the immediate demand barrier at $0.27 coinciding with the 200 SMA on the 6-hour chart seems likely.

If this level is pierced by overwhelming selling pressure, Polygon could indeed slide 30% to tap the intended target at $0.19.

MATIC/USD 6-hour chart

MATIC/USD 6-hour chart

Adding credence to the bearish outlook is a slew of underwater investors, as seen in IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model. IOMAP reveals that 13,200 addresses that hold nearly 800 million MATIC tokens are “Out of the Money” and might break even, dampening the bullish momentum.

MATIC IOMAP chart

MATIC IOMAP chart

Additionally, the number of whales holding between 100,000 to 1,000,000 MATIC tokens has reduced by 8.5%, from 979 to 118. Following a similar trend are the investors that hold 1,000,000 to 10,000,000 MATIC tokens. These market participants have cut down their exposure to MATIC tokens by 13.5% since March 11.

Such a drastic reduction suggests that the whales aren’t optimistic about the MATIC price’s bullish potential.

MATIC whale holder distribution chart

MATIC whale holder distribution chart

While the downward breakout seems set in stone, it could be altered by a strong surge in buyers or new capital flowing into the MATIC markets. If this momentum manages to push the price past the $0.40 supply barrier and create a higher high around $0.45, it will invalidate the bearish outlook.

In fact, such a move might catalyze a run-up to $0.54.

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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Two key dates over the SEC request to freeze Binance assets

Two key dates over the SEC request to freeze Binance assets

Crypto exchange Binance must respond to the US Securities Exchange Commission’s (SEC) order to freeze assets tied to its subsidiary Binance.US by June 12, ahead of a court hearing about the case on June 13, according to the D.C. district court schedule.

More Cryptocurrencies News

Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals

Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals

The US Securities and Exchange Commission’s (SEC) crackdown on Coinbase led to  mass withdrawals of Coinbase wrapped staked Ether (cbETH) since Tuesday, acting as a bearish catalyst for the asset’s price.

More Ethereum News

Dogecoin Price Prediction: History suggests a potential 30% rally in DOGE

Dogecoin Price Prediction: History suggests a potential 30% rally in DOGE

Dogecoin (DOGE) price has been trading within a fixed range over the last six months, taking seasonal leaps as volatility increased. With this accumulation pattern, the king of meme coins could be en route to complete the next bounce cycle.

More Dogecoin News

Axie Infinity price recovery delayed despite investor deposits hitting a five-month high

Axie Infinity price recovery delayed despite investor deposits hitting a five-month high

Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the SEC, the investors have resorted to offloading their holdings for now.

More Axie Infinity News

Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend. 

Read full analysis

BTC

ETH

XRP