MATIC Price Analysis: Polygon’s V-Shaped Recovery Unsustainable, Triggers Losses Below $1
- MATIC price shot upward in tandem with other cryptocurrencies but hit a barrier at the 100 SMA.
- Polygon is back to exploring areas under $1.2 while losses linger toward $0.62.
- The transaction history on-chain metric highlights immense seller congestion at $1.
Polygon has slumped back in the red barely a day after soaring to highs past $1. The upswing from $0.62 occurred as the crypto market generally recovered on Monday. Bitcoin led the bullish mission with gains touching $40,000, allowing altcoins to bounce upward at significant propositions. Polygon was one of the most improved assets, soaring past $1 to $1.13.
The smart contract token’s uptrend could not crack the 100 Simple Moving Average (SMA) barrier on the four-hour chart. Besides, the hurdle had been reinforced by the 200 SMA in the exact time frame.
At the time of writing, surging overhead pressure has pushed MATIC back under $1. The token teeters at $0.98 while bulls out a fierce fight to renew the uptrend above $1. In the meantime, the 50 SMA provides immediate support, which, if defended at all costs, may prepare Polygon for gains beyond $1.
Polygon Uptrend In Jeopardy
MATIC’s recovery from $0.62 took a V-shape chart pattern indicating previously extreme oversold conditions. This pattern is often regarded as highly bullish; however, sustaining the strong price action is not easy. Hence, the correction from the recent weekly high of $1.13.
The immediate hurdle at $1 must be broken for Polygon to continue with the uptrend. Such a move will bring attention back to $1.2 and $1.4, respectively.
MATIC/USD 12-hour chart
IntoTheBlock’s IOMAP model shines alike on the pessimistic outlook. Following the correction under 1$, recovery is unlikely to be sustainable. Note that the model highlights the most robust resistance between $0.99 and $1.02. Here, around 2,400 addresses previously bought 77 million MATIC. An uptick in buying pressure will have little impact on the barrier as selling pressure remains high.
Polygon IOMAP metric
On the flip side, support areas are abundant, as observed with the IOMAP. However, an increase in overhead pressure may pull Polygon to $0.85 before another recovery comes into play. It is worth keeping in mind that 2,200 addresses purchased 82 million MATIC around this price, making it formidable support.
What Could Uphold Polygon’s Bullish Bid?
The Moving Average Convergence Divergence (MACD) indicator displays a bullish impulse in the 12-hour timeframe. This bullish signal has been sustained since July 21. The uptrend could also resume as the trend-following indicator crossed the mean line (0.00) into the positive region.