• 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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP