• MATIC price regains bullish groove with a 29% gain, besting most cryptocurrencies.
  • Polygon volume profile finally reveals accumulation yesterday, with daily volume coming in at 3x the daily average.
  • 200-day simple moving average (SMA) serves as a springboard as prominent investors accumulate digital assets.

MATIC price closed yesterday with the best gain since the 63% gain recorded on May 24, marking a trend reversal for the Indian blockchain. Moving forward, Polygon confronts three tactical resistance levels that may impede a quick follow-through on the dynamic rebound. In fact, buying on weakness may provide the best approach to participating in a new advance.

MATIC price consolidates the bullish turn making patience imperative

MATIC price exploded onto the scene again with a headlining gain of 29%, pushing near the top of the cryptocurrency complex list of top performers. It was a loud rebuttal to the -40% decline that had dominated price action since the breakdown from the symmetrical triangle pattern on July 12. Nevertheless, Polygon is only up 10% for the week and is still down -25% in July, emphasizing the recent challenges for market speculators.

The MATIC price event was notable but what induces a renewed conviction in the Polygon story is the commitment and emotion displayed by investors, as it was the first positive day on above-average volume since the May 26 gain of 14%. The robustness of the bid reveals the engagement of prominent and institutional investors at the strategically important 200-day SMA at $0.66.

Yesterday’s rebound struck resistance at the June 22 low of $0.92, as well as today. It is one of three technical challenges that await eager Polygon market operators. The second resistance point is the symmetrical triangle’s apex at $1.06, followed by the 50-day SMA at $1.18. A rally above the moving average puts MATIC price on a path to the June 15 high of $1.75 and an 85% gain from the current price.

MATIC/USD daily chart

MATIC/USD daily chart

If there is an eagerness to be involved with Polygon, it is recommended to use a trade above yesterday’s high of $0.95 to trigger accumulation. The recommendation is based on the constructive MATIC price action since the rebound high, showing no selling on the intra-day charts as it constructs a pennant pattern.

A more profitable alternative is to allow MATIC price to correct some of the rebound and use the weakness to build a position. Levels of interest include the 50 four-hour SMA at $0.82 and the May 23 low at $0.74. 

MATIC/USD 4-hour chart

MATIC/USD 4-hour chart

If a MATIC price pullback accelerates into sell-off, the 200-day SMA is the critical support level on a daily closing basis. A close below the moving average raises the probabilities of the correction continuing, putting Polygon at risk of testing the March 11 high of $0.54 or, potentially, the 38.2% Fibonacci retracement of the 2021 advance at $0.39.

The constructive price action on the intra-day charts supplemented by the commitment and emotion behind the 29% gain tilts the outlook bullish. To participate, buying on weakness is the preferred option, but bullish opportunities usually emerge when momentum transforms into a pennant formation, as with MATIC price. Either way, there is impressive upside potential for Polygon investors.

Here, FXStreet's analysts evaluate where Polygon could be heading next.

 

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Key indicator suggests the worst is yet to come for Bitcoin as it gets closer to capitulation

Bitcoin is trading at a price further away from the average price at which coins moved on the network. The recent price action hints at a bearish trend typically aligned with capitulation events. Institutional investors are wary, suggesting BTC may drop further. 

More Bitcoin News

Shiba Inu price reverting to mean with 33% climb

Shiba Inu price is currently experiencing a pullback after failing to set up a higher high. While this is demeaning in the short term, it does not impact the bullish outlook negatively.

More Shiba Inu News

Solana price ready to liquidate early buyers before SOL enters 40% rally

A brief technical and on-chain analysis on Solana price. Here, FXStreet's analysts evaluate where SOL could be heading next as it seems bound for a correction before higher highs.

More Cryptocurrencies News

Tezos upside potential is uncertain as XTZ faces massive resistance

A brief technical and on-chain analysis on Tezos price. Here, FXStreet's analysts evaluate where XTZ could be heading next as it seems capped by a crucial resistance area.

More Tezos News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP