MATIC Price Prediction: Polygon Bearish Pressure Surmounts Bullish Effort
- Polygon price is dancing within the confines of a descending parallel channel.
- The number of new addresses joining the MATIC network dwindles alongside the declining prices.
MATIC price has not been able to break the resistance at $1.2 since last week. On the downside, support at $1 has continued to hold, allowing bulls to keep bearish advances in check. With the descending parallel channel still in check, we anticipate delays in recovery and perhaps another retreat in the short term.
MATIC downhill momentum may intensify
Polygon is doddering at $1.14 at the time of writing. For several weeks the smart contract token has sustained a downward price action in a descending parallel channel. Although the channel’s upper edge hinders MATIC from stretching the bearish leg, the lower boundary has ensured that bearish advances remain within controllable limits.
In addition to the descending parallel channel, Polygon also is locked within the 200 Simple Moving Average (SMA) support and the 50 SMA in the 12-hour resistance timeframe. If the support stays intact, bulls will lift the price above the channel’s upper boundary resistance and the 50 SMA.
The overall technical picture is sluggish, but bears seem to be having the upper hand, especially with the Relative Strength Index’s (RSI) position beneath the midline. Any action toward the oversold area will add credence to the bearish outlook.
MATIC/USD 12-hour chart
Santiment, an on-chain analytics platform, shows that Polygon is currently losing traction, which continues to delay recovery in the short term. The network growth model tracks new or unique addresses created and involved in a transaction on the protocol for the first time. Typically the chart highlights the project’s adoption over some time. Moreover, it points out whether the token is gaining or losing traction.
Diminishing network growth is a bearish signal. It shows that the digital asset does not have the willpower to proceed with the uptrend, hinting at a potential breakdown. Therefore, Polygon may keep falling in the near term until we see an uptick in the number of addresses created on the network.
Polygon network growth model
Looking at the side of the picture
MATIC price will start the uptrend if support at the 200 SMA holds. Moreover, a break above the descending channel’s upper boundary barriers will trigger massive buy orders amid increased speculation for gains aiming for $1.5 and $2.