Polygon (MATIC) Downward Trajectory Faces Resistance At $0.94 Level
Even with encouraging reports that Polygon is making deals and becoming one of the most widely acquired tokens by ETH whales, the future of its original token, MATIC, is not looking very bright.
As of September 13, it fell in line with the rest of the cryptocurrency market. The September 7-12 gain was eventually negated by bears in the $0.9403 resistance area.
With the same 5-day time frame since then, the token’s value has plummeted by a whopping 20.65 percent. At the time of writing, the price of the token has been hovering around the 78.60 Fibonacci retracement level, between $0.6898 and $0.7770.
Traders should watch both the 61.80 Fib level (now $0.6989) and the 0.7185 support level. These two factors have countered the downtrend and given the upward momentum at the hour-marks some much-needed support.
Polygon bullish momentum hints at demand
Also, bullish momentum appears to be building around the 1 hour time frame. Increases in the Stoch RSI value indicate that the demand for the cryptocurrency is increasing.
In addition, the momentum indicator shows that the trend is rising. However, a greater amount of momentum produced here can have a major impact on the bigger picture.
This slight upward trend may be due to the growing development activities in the Polygon chain. According to a recent analysis, this increase in development activity may indicate that the team is integrating new features or patching existing ones.
This further boosts investor and trader confidence. As the crypto market recovers from the September 13 sell-off, the recently announced partnership between Polygon and Flipkart could accelerate the adoption of MATIC and help expand the Polygon ecosystem.
MATIC price: potential buying pressure
Can recent developments at Polygon inspire confidence in this regard? Indeed, it has achieved just that. However, recent developments were not the primary cause of the price increase.
When the price fell, the indications also pointed to a strong buy signal. The bull-bear indicator reveals the same information. As the bulls gain strength, the Stoch RSI will also rise, indicating a major increase in buying pressure.
This may have consequences for the total recovery of MATIC. If the bulls are able to stabilize at the Fibonacci level of 71.80, another bullish rise may be conceivable to support the price’s upward momentum.
The $0.7395 price range represents the primary resistance level on this chart. If the bulls gain pace and break through this resistance level, the MATIC token could be about to recover.