Even with encouraging reports of Polygon closing contracts and ETH being one of the most acquired tokens by whales, the future of its native token, MATIC, is not looking too bright.
From September 13, it fell in line with the rest of the cryptocurrency market. The September 7-12 rally was ultimately denied by the bears at the $0.9403 resistance area.
Over the same 5-day period since then, the token’s value has dropped a staggering 20.65 percent. At the time of writing, the token was trading near the 78.60 Fibonacci retracement level between $0.6898 and $0.7770.
Traders should keep an eye on both the 61.80 Fib level ($0.6989 now) and the 0.7185 support level. These two factors bucked the downtrend and provided some much-needed support to the hourly upside momentum.
Chart: TradingView.com
The polygon indicates bullish momentum demand
Also, bullish momentum seems to be building around the 1-hour timeframe. An increase in the Stoch RSI value indicates that the demand for cryptocurrency is increasing.
Additionally, the momentum indicator shows that the trend is increasing. A large amount of momentum generated here, however, can have a large effect on the wider picture.
This secondary growing trend can be attributed to the expanded development activities in the polygon chain. This increase in development activity may indicate that the team is integrating new features or patching existing features, according to recent analysis.
This increases the confidence of investors and traders. As the crypto market recovers after the September 13 sell-off, however, the recently announced partnership between Polygon and Flipkart could accelerate the adoption of MATIC and contribute to the expansion of the Polygon ecosystem.
MATIC price: potential buying pressure
In light of this, can Polygon’s recent progress inspire confidence? Indeed, it accomplished just that. However, the recent progress was not the primary reason for the price increase.
As the price declines, the indications also point to a strong buy signal. The bull-bear indicator conveys the same information. As the bull momentum increases, the stock RSI will also increase, indicating a large increase in buying pressure.
This may affect the overall health of the MATIC. If the bulls are able to stabilize at the 71.80 Fibonacci level, another bullish rally can be expected to support the upward movement of the price.
The $0.7395 price range represents the primary level of resistance on this chart. If the bulls gain momentum and break this resistance level, MATIC token could be on the verge of a recovery.
MATIC total market cap at $5.9 billion on the daily chart | Source: TradingView.com Featured image from Coincu News, Chart: TradingView.com
