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Polygon Price Analysis: MATIC/USD bears pull below 62 percent FIB retracement

TL;DR Breakdown

  • Polygon price action went through an upswing above the 62% FIB retracement level at $1.382.
  • The coin is trading at $1.43 and recently activated the 50-day SMA. 
  • Bollinger bands are expanding outwards.

Polygon Price Analysis: General price overview

Polygon price action went through an upswing on the 4-hour chart and corrected above the 62% FIB retracement level at $1.382. However, the trend was unable to activate the 50% retracement sitting near resistance at $1.59. This suggests weak buyer volumes and the chances of a minor pullback. MATIC has proved that it can prevail downward pressure from the broader market after the coin rebounded by 230% from May’s 75% correction. 

The coin formed two consecutive dojis on yesterday’s daily chart, suggesting indecision in the market. Both dojis can also be termed as negative signals, indicating high chances of reversal from the prevailing market downtrend. To validate an upward correction, MATIC should close above $1.74 and be able to sustain buyer volumes above the 50-day simple moving average lying at $1.26. Polygon price action is relatively flat and less volatile. At the time of writing, the coin is trading at $1.43 and recently activated the 50-day SMA. 

Some important news around Polygon is the integration of the scaling solution with Ethereum applications to allow efficiency and affordability when transferring funds to the Polygon POS network from an exchange. The announcement of the integration was made by OKEx, which is the world’s leading derivatives exchange for digital assets. 

Polygon price movement in the last 24-hours: Surplus support levels

Polygon (MATIC) opened the daily trading chart at $1.4840. The price of the coin slumped to an intraday low of $1.3929 on the 1-hour chart, after which a long candle appeared with its tip at the 1-hour high of $1.45. The intraday high is $1.49, the daily range is moderate, indicating moderate volatility across MATIC’s daily chart. 

Polygon price action at the moment is supported by a number of pivot levels such as the 61.8% and 78.6% FIB retracement, as well as the moving average at $1.26. The bears can only snatch this price zone by bringing in more sellers at $1.2. On the other hand, the bulls should watch out for resistance at $1.59 and poise to bring in more buyers at the current price trend so as to overcome the overhead resistance. 

(Source: TradingView)

Polygon 4-hour price chart: Expanding bolinger bands

The Bollinger Bands are expanding outwards, the price of the coin extends from the lower band line towards the middle line on the 4-hour chart. This marks a bullish signal, indicating the possibility of reaching $1.50 in the near term. 

(Source: TradingView)

Polygon price analysis conclusion: Popularity of DeFi will drive MATIC 

Polygon, which is a scaling solution for the Ethereum blockchain, has received acclaimed attention for solving some of the biggest problems facing smart contracts, including low transaction speeds, high transaction fees, and poor user experience. With the increasing popularity of NFTs, dApps, and DeFi, Polygon will increasingly grow in popularity, which will positively impact its price.

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