Even with encouraging reports of Polygon closing deals and being one of the most acquired tokens by ETH whales, the next generation token, MATIC, is not looking too bright.
It has crashed along with the rest of the cryptocurrency market since September 13th. The 7–12 September rally was finally resisted by bears at the $0.9403 resistance area.
Since then, in the same 5-day time frame, the token’s price has fallen by an impressive 20.65%. At the time of writing, the token price was hovering at the 78.60 Fibonacci retracement level, between $0.6898 and $0.7770.
Traders should monitor both the 61.80 Fib level (now at $0.6989) and the 0.7185 support level. These two factors bucked the downtrend and provided much-needed support for the hourly upward momentum.
Chart: TradingView.com
Polygon Bullish Momentum signals on demand
Also, bullish momentum seems to be building over the 1-hour period. An increase in the value of the stock RSI indicates that the demand for cryptocurrency is increasing.
In addition, the speed indicator shows that the trend is increasing. The huge amount of momentum generated here can have a huge impact on the wider picture.
This slight growth trend may be due to the expanding growth activity in the polygon chain. This increase in development activity may indicate in a recent analysis that the team is integrating new features or tweaking existing ones.
This further increases the confidence of the investor and trader. As the crypto market recovers after the September 13 selloff, the recently announced partnership between Polygon and Flipkart will accelerate the adoption of MATIC and contribute to the expansion of Polygon’s ecosystem.
MATIC price: potential buying pressure
In light of this, could recent developments at Polygon boost confidence? Indeed, he did exactly that. However, recent developments were not the main reason for the price increase.
As the price decreases, the indicators also indicate a strong buy signal. The bull-bear indicator shows the same information. As the bulls rise, the Stoch RSI also rises, indicating a significant increase in buying pressure.
This may have an impact on the overall recovery of MATIC. If the bulls are able to stabilize at the 71.80 Fibonacci level, another major increase can be considered to support the higher momentum of the price.
The price range of $0.7395 represents the primary level of resistance on this chart. If the bulls gain momentum and break through this resistance level, the MATIC token may be on the rebound.
MATIC total market cap at $5.9 billion on the daily chart | Source: TradingView.com Featured image from Coincu News, Chart: TradingView.com