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MATIC Price Forecast: Polygon At The Threshold, Unable To Launch To $1.6

Last Updated August 9th 2021
2 Min Read
  • MATIC price continues to firmly hold above the crucial $1 as consolidation stretches into a new week.
  • The transaction history mode reveals that Polygon should prepare to battels a massive seller congestion zone at $1.27.
  • The 100 SMA holds above the 100 SMA on the 12-hour chart, crediting the support at $1.

Polygon only touched $1.2 during the weekend, despite major crypto assets accruing impressive gains. Bitcoin made it to $45,000 despite retreating to $38,000 last week. The most prominent smart contract token Ethereum lifted to $3,200 before correcting under $3,000 while Ripple cracked the resistances at $0.78 and $0.08 to trade weekend highs of $0.84.

On the one hand, Polygon price action remained limited between $1 and $1.2. The immediate support at the 100 Simple Moving Average ((SMA) ensures that losses do not extend under $1. On the other hand, Polygon upward movement could be capped under the 200 SMA in addition to the seller congestion at $1.

What Could Be Holding MATIC Price Back From Rallying To $1.6?

The Moving Average Convergence Divergence (MACD) indicator reveals that Polygon is slightly in the bulls' hands. However, the prevailing momentum is not enough to overcome the barriers mentioned above. At the same time, bulls have just enough strength to keep bearish advances at bay, thus limiting losses that could explore levels under $1

Consequently, the Relative Strength Index (RSI) adds credence to the bullish outlook, following a rebound from the midline. Perhaps a continued move to the overbought region may call more buyers into the market and trigger gains above $1.2.

MATIC/USD 12-hour chart

 MATIC/USD 12-hour chart 080921

In/Out of the Money Around Price (IOMAP) on-chain metric shows that Polygon has a relatively smooth path above $1.2. However, if the uptrend is not robust enough, slicing through the resistance highlighted at $1.27 will be an uphill battle. Around 2,800 addresses previously bought million MATIC.

On the downside, the absence of immense buyer congestion zones leaves Polygon in jeopardy and a massive breakdown risk. Trading below $1 could see MATIC exploring price levels toward $0.9.

Polygon IOMAP model

 Polygon IOMAP model 080921

Looking At The Other Side Of The Fence

It is worth noting that support at the 100 SMA seems strong enough to keep MATIC above $1. Besides, the smart contract token is trading above an ascending trend line, which adds weight to the available support. As long as bulls focus on lifting above $1.2 and perhaps the 200 SMA, massive gains will likely follow toward $1.6.

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