Polygon rebounds a second time on its support, suggesting an upward recovery in its price. Let’s look together at the future prospects of the MATIC course.
Polygon Location (MATIC)
Polygon went through a period of decline, which appears to have ended after its price bounced off the support at $0.50. Indeed, it was from this level that the price of MATIC began to increase, thus exceeding its previous peak. Following this development, the price of the cryptocurrency found new support at $0.70, which allowed it to reach a new high, slightly above the psychological threshold of $1. Unfortunately, this latest bullish move has been completely reversed. The Polygon token therefore had to retest buyer interest at the support level at $0.70.
Today, MATIC is trading around $0.88. It appears that cryptocurrency has recently benefited from renewed interest from buyers. It is worth noting that MATIC has recently bounced off its 200-day moving average and is currently above its 50-day moving average, suggesting that the currency is in an uptrend. However, the fact that these moving averages are horizontal also indicates a period of uncertainty. On the oscillator side, they bounced above the median level, signaling a resumption of bullish momentum.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (MATIC/USDT)
We can observe that the open interest of MATIC/USDT perpetual contracts has increased at the same rate as its price, accompanied by a slightly positive funding rate. This simultaneous increase suggests that traders’ speculative interest is primarily oriented toward buying. Concerning liquidations, they do not seem particularly significant, although it should be noted that they are mainly on the buyers’ side. This could indicate an excess of optimism on the part of the latter.
The heatmap of MATIC liquidations over the last three months shows that the $0.87 barrier has been breached. Currently, two key areas can be identified around MATIC. Below, the support zone is located around $0.81. Above, the resistance zone is between $0.95 and $0.97. As the market approaches this level, we could see a massive triggering of orders, which would potentially increase the volatility of the cryptocurrency. This area therefore represents a major point of interest for investors.
Hypotheses for the Polygon (MATIC) price
If the price of MATIC fails to remain above $0.72, we could anticipate a continuation up to the $1 threshold. The next resistance to take into account, if the bullish movement continues, would be its last peak at $1.1 – $1.2 and above if buying interest continues to dominate. At this stage, this would represent an increase close to + 37%.
If the price of MATIC fails to remain above $0.72, we could consider support for buying interest in the $0.67 zone. The next level to take into account, if the bearish movement continues, would be around $0.5. At this stage, this would represent a drop close to – 40%.
Conclusion
The cryptocurrency associated with Polygon appears to be experiencing renewed interest from buyers after a period of decline. However, given that it is currently in a consolidation phase, this raises questions about MATIC’s future performance. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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