MATIC price primed for an upswing as Polygon-based NFT activity soars above $1 million

Polygon (MATIC) price has been seen tanking sharply on Monday and Tuesday as price action slips further away from the 200-day Simple Moving Average (SMA). Although the sentiment looks bearish, one big element provides a bullish undertone. Expect to see a turnaround soon as NFT sales in MATIC are outpacing ETH sales substantially these past few days.

Polygon price could quickly turn into a bear trap

Polygon price has broken the support from the 200-day SMA as bears are pushing MATIC against $0.96 with a pivotal level and the monthly S1 support level nearby. Although the sentiment looks very bearish, there is one big bullish element that should not be ignored. According to Sealaunch.xyz, NFT sales have recently surged in favor of Polygon and are now outpacing ETH-based sales. 

tweet sealaunch.xyz

MATIC could soon turn 180 degrees and heading back upwards as bulls will buy eagerly on the dips as support is being respected for now. With the Relative Strength Index (RSI) back in oversold territory, it has become clear that bears have very limited to no room to push further downwards. Expect to see a possible bear trap unfold with bears soon being stopped out once bulls trade MATIC back above the 200-day SMA and head for $1.06 in a bear squeeze.

MATIC/USD  4H-chart    

Although NFT sales have peaked, traders could ignore it as a one-off event and not contribute anything substantial to the current valuation for MATIC. Once $0.96 has cracked under pressure, the next leg lower points to $0.87, nearly 10% lower. In case the descent accelerates into a falling knife, $0.82 could be the level to watch for MATIC to start slowing down or halting its decline.