Share:
  • MATIC price shows bullish momentum despite being stuck between the 50-day SMA and 100-day SMA.
  • Investors can expect Polygon to see a temporary 13% run-up to $2.43, where it will face a decisive moment.
  • A six-hour candlestick close below the 100-day SMA at $1.91 will invalidate the bullish thesis.

MATIC price is in a tough spot due to its upswings in the last week of December 2021. Although Polygon could see an uptrend, the bulls will face an extremely resilient resistance barrier that will likely stop Polygon dead in its tracks. 

MATIC price ready for a minor comeback

MATIC price set up a higher high on December 27, 2021, at $2.93, which also happens to be the all-time high. This run-up failed to sustain, leading to a steep correction that sliced through the demand zone, extending from $2.43 to $2.63, flipping it into a breaker.

Since reaching its all-time high, Polygon has crashed 27% to where it currently trades - $2.12, stuck between the 50-day Simple Moving Average (SMA) at $2.19 and the 100-day SMA at $1.91. MATIC price bounced off the weekly support level at $1.94 and is heading toward the 50-day SMA, which could evolve into a 10% uptrend to $2.35. Beyond this level, Polygon could retest the breaker, stretching from $2.43 to $2.63, bringing the total climb to 13%.

However, market participants should note, MATIC price will likely face rejection at the said barrier, leading to a retest of the 50-day SMA at  $2.19 before deciding on a directional bias.

MATIC/USDT 6-hour chart

MATIC/USDT 6-hour chart

Supporting this short-term uptrend to $2.42 for MATIC price is IntoTheBlock’s Global In/Out of the Money (GIOM) model, which shows non-existent resistance barriers up to $2.48.  

The only meaningful cluster of underwater investors extends from $2.82 to $2.21. Here, roughly 55,510 addresses that purchased 451.84 million MATIC tokens at an average price of $2.48 are “Out of the Money.” 

Therefore, a move into this territory could lead to these underwater investors wanting to break even, causing a spike in selling pressure, explaining the rejection from the breaker explained above.

MATIC GIOM

MATIC GIOM

Further explaining the pickle that Polygon is in is Santiment’s Network Growth metric, which has dropped roughly 46% since the all-time high at $2.93 on December 27, 2021. This on-chain index measures the number of new addresses joining the network and can indicate if the project is gaining traction or losing it. 

For Polygon, the network growth has dropped from 4,693 to 2,535, representing a net decline, suggesting that investors are not interested in MATIC price at the current levels.

MATIC network growth

MATIC network growth

If MATIC price produces a six-hour candlestick close below the 100-day SMA at $1.91, it will invalidate the bullish thesis. This development opens the path for Polygon to retest the 200-day SMA at $1.56.

 


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

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol (NEAR) price is trading with a bullish bias, with a sustained series of higher highs since the last week of January. With investors groping for discounted entry points, NEAR could correct before the next leg up.

More Cryptocurrencies News

Ethereum price teases with a breakout, eyes $3,200 milestone as ETH bulls show resolve

Ethereum price teases with a breakout, eyes $3,200 milestone as ETH bulls show resolve

Ethereum (ETH) price consolidation within the ascending parallel channel has lasted since October, with the Proof-of-Stake (PoS) token making multiple attempts to breakout. As it stands, Ethereum continues to outperform Bitcoin (BTC) with double the gains.

More Ethereum News

Solana Price Prediction: SOL could easily go all the way back to $79.49 low

Solana Price Prediction: SOL could easily go all the way back to $79.49 low

Solana (SOL) price is trading with a bearish bias, recording a series of lower highs and lower lows since mid-February. The downtrend has seen the Layer 1 (L1) token drop below the midline of the market range between $79.49 and $126.27.

More Solana News

BNB price eyes $400 as Binance Coin bulls keep showing up

BNB price eyes $400 as Binance Coin bulls keep showing up

Binance Coin (BNB) price has formed lower highs and lower lows over the past few days, but the bulls continue to maintain a strong presence in the market. BNB has also steadfastly shown strength despite the recent uncertainty in the market as altcoins awaited cues from Bitcoin (BTC) price.

More Binance News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP